Module -2 IHRM Policies and Practices - Part A 7 hours

Syllabus:

Managing Knowledge in Multinational Firms: Introduction, Different types of

knowledge, Factors influencing knowledge sharing How to stimulate knowledge
sharing Gaining access to external knowledge, Knowledge retention From the
management of knowledge to innovation
Training and Development: Developing Global Leaders and Expatriates
Training and Development: Domestic Versus International Organisations International
Training Management: Basic Concepts and Models Leadership Training and
Development in International Organisations Technology in International Training
Management.

MANAGING KNOWLEDGE IN MULTINATIONAL FIRMS

1. Introduction

● A primary rationale for the existence of MNCs is their ability to transfer

knowledge more effectively and efficiently than through market mechanisms.
▪ The competitive advantage of MNCs stems in part from its ability to
replicate operating routines that have proved effective elsewhere in the
corporation, and in part from its ability to access and recombine new
knowledge.

● Within MNCs, knowledge sharing is facilitated by cross-unit social capital,

organisational values of collaboration and sharing, and global mindsets among
employees.

● Knowledge acquisition requires investment in external scanning on a global

scale; the development of partnerships with customers, research labs and other
organisations; and an ability to use the open market to identify complementary
knowledge.

2. Different types of knowledge

● Knowledge are beliefs that organisational members hold about what

constitutes effective organisational actions and practices. A distinction between
explicit and tacit knowledge was first advanced by Polanyi (1967) and
developed by Nonaka (1994).
▪ Explicit: knowledge that individuals and organisations know they have
(objective, formal, systematic and relatively easy to pass on to others at
a low marginal cost). Knowledge stored in IT-based databases is
explicit.
❖ Shared through databases, manuals and blueprints.
▪ Tacit: personal, context specific, hard to formalise and communicate.

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 Individuals may not even be conscious of tacit knowledge they possess.
Underlies complex skills and is fundamental to the intuitive feel
acquired through experience.
❖ Sharing requires connections or networks.

● Development of advanced IT-based systems fuelled interest in knowledge

management during the 1990s.
▪ Accenture invested in the development of a global knowledge
management system with thousands of databases where consultants
would enter knowledge about projects into the system for other
members to access it.
▪ Most organisational members bad at entering useful knowledge into
databases and not all tacit knowledge can be made explicit. Even
though some knowledge is codified, there is a need to combine with the
sharing of tacit knowledge through interactions between people from
different parts of the MNC (Harzing, 2009).

● Knowledge varies according to its strategic importance for the enterprise.

Lepak & Snell (1999) developed a framework that emphasizes the need for a
differentiated approach to knowledge management and HRM depending on the
strategic value and firm specificity.
▪ Core: unique to firm and high in strategic value, such as Toyota’s
manufacturing expertise. Implies a focus on retaining and developing
the talent of people in whom this core know-how resides.
Compulsory: available. Essential for an opportunity to compete but
offering no distinctive competitive advantage. Likely to be managed
through close attention to performance management.
▪ Idiosyncratic knowledge: know-how unique to the firm but does not
have clear strategic value in present, though it may represent core
knowledge of the future.
▪ Ancillary: low strategic value and uniqueness may be outsourced or
automated.
● We highlight the issues concerning knowledge sharing, which refers to the
process of exchange of existing knowledge among individuals, teams and units.
▪ Capability of firm to develop, retain and exploit core knowledge
through internal sharing across dispersed units is an important source of
competitiveness.
▪ Shift from a focus on the home country to the ability to generate and
transfer knowledge from local units to the parent and other parts of the
corporation.

3. Factors influencing knowledge sharing

● For an MNC, the diversity of knowledge throughout the organisation can be a

great asset if it can be shared effectively across these boundaries to improve
existing capabilities, while combining local knowledge from different
environments may lead to innovation: enhancing the company’s competitive
edge.

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 ● There are costs associated with sharing (Szulanski, 1996), creating particular
difficulties if it is tacit ambiguous knowledge (Simonin, 1999).Attention to a
range of technological, organisational and people-related issues.
●

Sender unit’s ability and willingness

● Disseminative capacity refers to the ability and willingness of organisational

members to share knowledge (Minbaeva and Michailova, 2004).
▪ For sharing explicit knowledge, this pedagogical ability is evidenced by
source unit’s proficiency in codifying knowledge in manuals, reports
and systems avail. to other parts of the corporation.
▪ Sharing tacit knowledge is more difficult, requiring skills in
interpersonal and face-to-face interaction (good language and
communication skills and understanding of cross-cultural factors).
▪ For knowledge sharing to take place, the source of the knowledge must
be willing to share it (Szulanski, 1996): ‘why help others in an
organisation with something that is a key competitive advantage for
one’s own career?

● Social status and reputation play important roles in shaping the context for
knowledge sharing: people gain status when considered as knowledgeable and
sharing knowledge with others is a good way for them to enhance their
reputation.
▪ Knowledge sharing requires social networks within the MNC where
reputations are built and where people learn not only what the useful
sources of knowledge are, but also who is willing to engage in joint
problem solving.

Receiver unit’s ability and willingness

● Absorptive capacity (Cohen and Levinthal, 1990) is commonly used to

describe the ability of the receiving unit to evaluate, assimilate and exploit new
knowledge from outside the organisation (Zahra and Georg, 2002). Critical and
not enough emphasis placed on this.
▪ Since knowledge changes when it is introduced in or absorbed by a new
context, the ability to absorb new know-how requires a knowledge base
and experience with its transfer.
● The term relative absorptive capacity (Lane and Lubatkin, 1998) has been
coined to refer to the unit-specific ability to absorb knowledge from another
party.
▪ When two units are similar, it is easier for them to understand/absorb
knowledge from the other. However, similar units have less to learn
from each other: more knowledge overlaps, less to be gained from
investment in knowledge sharing.

● Absorptive capacity is more than just the ability of a unit to recognise the value
of new information, to assimilate and apply it to commercial ends (Zahra and
Georg, 2002). It also includes the capacity to unlearn, to challenge existing
ways of doing things.

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 ▪ Lack of motivation to learn from other units is documented: natural
tendency to inflate the perceived quality of one’s own knowledge while
deflating that of others.
❖ Unwillingness of units in mature markets to learn from
subsidiaries in emerging economies as the flow of knowledge
was historically one-way.
❖ ‘Halo effect’: in the absence of reliable information about the
quality of the other units’ knowledge, people rely more on the
knowledge in well performing subsidiaries, ignoring the
potential value of low performers (Gupta et al., 2008).
❖ Tendency to prefer to learn from similar units, those that follow
a similar strategy and share common organisational
characteristics.

Relationship between the sending and receiving units

● Internal MNC knowledge transfer possible only when close relationships are
established between senders and receivers. Empirical studies on internal MNC
knowledge transfer:
▪ Szulanski (1996) claimed that ‘intrafirm exchanges of knowledge are
embedded in an organisational context and the transfer of knowledge
(especially with a tacit component) therefore requires numerous
individual exchanges’.
▪ Hansen (1999) concluded that absence of relations and communication
among people from different departments inhibits knowledge transfer,
while strong inter-unit relations facilitate it. He also found that units
more involved in their respective knowledge networks were able to
acquire more knowledge from other divisions in the network (Hansen,
2002).

4. How to stimulate knowledge sharing

MNCs can make knowledge sharing effective, efficient and fast by:

● Disseminating information about superior performance and knowledge

▪ It is important to identify superior practices by measuring relevant
dimensions of unit performance. By making performance data widely
available, the units can themselves uncover examples of unique and
valuable knowledge.
❖ Alfa Laval Agri from Sweden held quarterly meetings for all its
subsidiary managers where they were required to present
performance data along multiple dimensions, which helped to
reduce the bias present in internal assessments of capabilities
and stimulated knowledge sharing among the units (Monteiro et
al., 2008).

● Employing HRM practices that influence the ability and motivation of

employees to absorb knowledge
▪ Research shows that successful implementation of traditional HR
practices can enhance a unit’s absorptive capacity (Minbaeva et al.,
2003) e.g. by recruiting people with required skills/knowledge or
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 investing in training and development. Performance management
systems give employees direction for enhancing their competencies to
meet the organisation’s knowledge needs.
▪ Rewards for knowledge sharing in performance-based compensation
reduces uncertainty with issues of goal prioritisation but can also lead
to obstacles to knowledge sharing: when pecuniary rewards are
introduced, an incentive for the individual to withhold knowledge for
future gains is also added (Bock et al., 2005). When individuals
perceive that they are rewarded for their performance and expertise,
sharing knowledge with others may be seen contrary to their interest.

▪ As Osterloh and Frey (2000) suggest, intrinsic motivation is more

effective than the motivation of extrinsic rewards when tacit knowledge
is involved. In certain circumstances, the use of rewards may be
counter-productive, which implies that we cannot simply pay for a
knowledge-sharing behaviour: such collaborative behaviour must be
encouraged and facilitated (Bock et al., 2005).
❖ At Schlumberger, knowledge sharing is part of the formal
performance reviews for managers and engineers. Schlumberger
field engineers have objectives relating to best practices, lessons
learned and other aspects of knowledge sharing. An incentive
system encouraging collaboration and knowledge sharing is
more likely to produce these outcomes than a performance
evaluation system.

● Selecting expatriates with knowledge sharing in mind

▪ Cross-border transfers of personnel is one of the most important levels
of knowledge sharing that MNCs have at their disposal. The close
interactions of experienced expatriates with employees in their local
units offer opportunities for sharing tacit knowledge (Lazarova and
Tarique, 2005).

▪ Hocking (2007) studied how expatriates contribute to the strategic

objectives of MNCs and found that the impact of expatriate knowledge
results from frequent knowledge access as well as communication
with corporate HQs and other units of the firm, while expatriates
derive experiential learning from frequent access to local knowledge.
Characteristics looked for in expatriates include:
❖ Professional and technical competence; relationship and
communication abilities; cultural sensitivity and flexibility.

▪ However, expatriation has its limitations.

❖ Toyota’s global strategy has been focused on gaining market
share by building manufacturing plants in markets all over the
world. Employees from these new locations were taught the
Toyota Way (production and manufacturing philosophy of
continuous improvement), tacit knowledge transferred through
extensive of expatriates.

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 ❖ Toyota expanded and did not have enough expatriates. To
speed up the learning process and to reinforce the knowledge
transfer mechanism, Toyota created a Global Production Center
in Toyota City with the goal of accelerating development of
local employees with deep knowledge of the Toyota production
system (TPS).

● Designing appropriate structural mechanisms

▪ Various lateral structural mechanisms are used in part or primarily to
stimulate knowledge sharing. E.g., product development committees
with members that represent different geographic units and functional
areas are established with the aim of tapping into the different
perspectives and pools of experience that the members bring to the
committee.
❖ The Knowledge Management Programme (KMP) at the world’s
largest steel manufacturer ArcelorMittal shows how MNCs
create horizontal teams or committees to enhance inter-unit
knowledge sharing. Members from different plants were
assigned to groups depending on activities (manufacturing,
finance, IT and legal) and would then meet frequently to
benchmark these activities undertaken in the different units
and discuss problems. ArcelorMittal abstained from appointing
a best plant for others to emulate, believing that all units had
something to teach others.
❖ Working in project or so called ‘split egg’ roles where managers
and professionals have vertical and horizontal responsibilities, is
at the heart of BP’s focus on global knowledge management in
its oil exploration and production business (Hansen, 2001). ‘The
model is an open market for ideas, people develop a sense of
where the real expertise lies’.

▪ The knowledge management groups at ArcelorMittal and BP have

many of the features associated with open communities of practice.
These are characterised by some form of collaboration around a
common set of interests.

● Building a conductive social architecture: social capital, social norms and

global mindsets
▪ The social relationship between the source and the receiver is another
strong determinant of knowledge sharing within MNCs (Hansen et al.,
2005). Taken as a whole, these relationships constitute the social capital
of the firm.
▪ Social capital increases the organisation’s ability to acquire and transfer
new knowledge (Gooderham et al., 2011). According to Nahapiet
(1998), social capital comprises 3 interrelated dimensions which are
very important: relational, cognitive and structural.
❖ A range of HR practices have the growth of social capital as
aims: from corporate training programmes with participants
from different parts of the MNC, induction programmes for
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 recruits to transfers of personnel.

▪ Knowledge sharing is also influenced by people’s state of mind, and the

term global mindset has gained prominence in IHRM literature. This
dimension is concerned with why some people are better in sharing and
receiving knowledge across cultures.
❖ Global mindset: ability to accept and work with cultural
diversity, reflected in research that tries map the skill or
competency sets associated with diversity management. Cultural
self-awareness and the openness to and understanding of other
cultures are core elements of the psychological or ‘cultural
perspective’ on global mindset (Levy et al., 2007).

5. Gaining access to external knowledge

● Academics agree that the successful MNCs are increasingly those better at
exploiting the possibilities offered by their worldwide networks to gain access
to new knowledge and ideas from foreign locations.
▪ Objective of the Connect + Develop model championed by Procter &
Gamble (P&G), the aim of which was to find external ideas that could
be further developed within the corporation, often in collaboration with
external partners.

● The meta-analysis conducted by van Wijk (2008) found that both external and
internal knowledge sharing/transfers were largely influenced by the same
mechanisms. However, firms may use additional approaches to access
knowledge from the outside:
▪ Scanning or tapping into local knowledge base; partnering or merging
with other firms; and playing the virtual market.

Scanning global learning opportunities

● Scanning involves gaining access to external knowledge from what people

read, hear or experience. Although new insights typically come as a by-product
of ongoing operations, specific investments in scanning may enhance the
external acquisition of
new knowledge especially when innovation and development are
encouraged in the organisation.

● From an HRM perspective, there are pros and cons associated with establishing
a unit in locations such as Silicon Valley.
▪ There is an ample supply of people with relevant experience and the
opportunity for social contacts can be invaluable. Social networks not
only help a firm tap into external knowledge but also serve as a conduit
for its proprietary knowledge.

● Accessing and assimilating complex tacit knowledge requires considerable

investment in time and resources.
▪ After attempting an unsuccessful joint venture with a French company,
Shiseido (Japan) formed a wholly owned subsidiary to develop and

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 product fragrances. It also established a high-end beauty parlour in
Paris and bought two functioning beauty salons. After long success,
Shiseido learnt to let host country people with long-term industry
experience take charge of its operations in France.
▪ Shiseido acquired competences in product development, manufacturing
and marketing that the company was able to transfer back to Japan,
through close observation/interaction between Japanese expatriates and
French employees.

Partnering or merging

● A significant proportion of knowledge acquisition comes about through

partnering, deep relationships with other organisations. Some alliances and JVs
are established with the explicit objective of co-creating new knowledge.
▪ One challenge in learning alliances and JVs is that they may involve
firms with competing interests, where parties strive to learn from each
other to improve their individual position (Pucik, 1988).
❖ In the joint venture between Toyota and GM, GM’s aim was to
learn about lean manufacturing from Toyota and Toyota wanted
to learn about the US market to gain experience in establishing a
local production unit. It has been argued that Toyota was more
successful in that ‘race to learn’ because its HRM strategy and
learning objectives were fully aligned.

● The use of outsourcing has become widespread in all industries but there are
significant challenges in developing appropriate structures for such projects
and attention should be paid to developing the social relationships needed for
the collaboration to run smoothly.
▪ A major challenge for firms is to capture the individual learning of the
key people involved in such partnerships, translating it into
organisational know-how.

Playing the virtual market

● One of the effects of the digital revolution described by Friedman (2005) in

The World is Flat is the use of new technologies to link individuals and
organisations in all parts of the world.
▪ P&G has paid considerable attention to how best to use the market for
knowledge acquisition. Together with other large corporations, P&G
has helped create firms specialising in connecting companies with tech
problems with other companies, universities, labs and individuals who
may be able to provide solutions. These market brokers help write
technology briefs and facilitate the interaction between the corporation
with the problem and organisation or individual with the potential
solution (Huston and Sakkab, 2006).
● Challenges involved in the use of virtual cross-border teams and international
alliances are amplified when playing the virtual market.

6. Knowledge retention

● Stimulate knowledge sharing among individuals and units, so that the company

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 is less dependent on a smaller number of people. An illustration is when people
with unique knowledge are approaching retirement.

● Reduce employee turnover, reducing the leaking of proprietary knowledge to

competitors. This means trying to make sure that employees believe that they
have good development opportunities in the firm and paying attention to the
individual interests of the person (Evans et al., 2011).

● Invest in making tacit knowledge explicit. The Japanese knowledge

management scholar Ikujiro Nonaka (1994) calls this ‘externalisation’. He
suggests that metaphors can help individuals to explain tacit concepts that are
otherwise difficult to articulate by conveying intuitive images that people can
understand. The explicit knowledge can then be codified and saved in
databases where they can be accessed after the people with the embedded
knowledge have left the firm.

● The example of how to manage repatriates illustrates all three strategies.

Successful retention management is part of a successful approach to repatriate
knowledge sharing.
▪ The organisation to make sure that repatriates have opportunities to
share their knowledge by assigning them to projects and committees
(Oddou, 2009). In some cases, reports/presentations can be tools for
capturing and sharing insights gained during overseas assignments
(Lazarova and Tarique, 2005).

7. From knowledge management to innovation

● The biggest problem may not be that MNCs do not know how to be
innovative – it is that the properties needed to be innovative are different from
those needed to be successful in exploiting what they are doing well today.

● Effective knowledge management is important to exploit existing capabilities

on a global scale and explore new ideas that can be developed into new
product/service offerings. While both are needed, finding balance between the
two is challenging (March, 1991).

● The management of knowledge and innovation on a global scale is clearly a

challenge, with numerous HRM implications, although nothing that confers
sustainable competitive advantage comes easily.
▪ Performance management systems/compensation schemes have to
encourage both exploration and exploitation.
▪ MNCs need to recruit and select employees bearing in mind the
acquisition of valuable external knowledge, but they also need to
socialise new employees to make sure that this knowledge is shared
across units.
▪ A key decision-making criterion for staffing decisions should
increasingly be the innovative ability of the firm.

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 9

 CASE STUDY: Spurring innovation through global KM at P&G

● An important reason behind P&G’s growth and success has been its ability to
create innovations. However, while the company continued to develop
innovative new products
in the 1990s, by 2000 profits were lacklustre, the stock was underperforming,
and P&G was facing creasing returns on its investments in R&D.

● While the company knew that many of its best innovations came when
combining ideas from different parts of the corporation, the inflow of
knowledge from the overseas unit was limited as was lateral knowledge
transfer among the foreign subsidiaries. While P&G had some positive
experiences acquiring new products from outside the firm, these innovations
and their connections were too infrequent.

● In 2000 the new CEO set out to change radically how the company went about
innovation. He set a challenging strategic goal that 50% of new products
should stem from idea acquired from outside the company.

● Enhancing how P&G captured and shared knowledge across borders would not
be an easy undertaking: functional barriers between R&D, manufacturing,
marketing research, etc would have to be eliminated, as well as reducing those
between the different business units. There was a need to improve the linkage
between problem identification, external knowledge acquisition, internal
knowledge sharing and global exploitation of innovations.

● New model P&G called ‘Connect + Develop’: goal was to tap into knowledge
and ideas outside the company, from small to medium-sized companies,
university labs, individual researchers, its business partners and even from its
competitors. An additional aim was to improve the sharing of knowledge and
ideas within the company.
▪ Appointed 70 senior tech entrepreneurs to work in 6 regional hubs,
focusing on finding products and technologies that were specialties
within their regions.
▪ Established 21 global communities of practice, networks of experts
working in the different business areas.
▪ Helped create several firms that operated open networks (connecting
scientists, companies, universities and government labs).

P&G’s innovation success rate has more than doubled since 2000. The number of new
products originating from outside the firm has risen by 35% and R&D spending has
been reduced from 4.5% of sales in the late 1990s to 2.8

Training and Development:

IHRM and training and development Training and development increases in complexity
as MNEs move abroad. Types of training and development depend on a number of
factors: The degree to which management is centralized. The types of workers
employed in subsidiaries or joint ventures. The importance of branding, and the extent
to which employees are expected to reflect the brand. The cultural expectations of

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training. In a global company, the training may well be centralised so that suppliers,
employees and distributors are aware of the brand image that needs to be
communicated. E.g. in Ford training programmes are set up centrally, and then
translated and delivered to all main suppliers, subsidiaries and distributors. If, however,
a more polycentric approach is taken, then the training may well be far more local, and
more in line with the local culture.

Developing Global Leaders and Expatriates

Shaffer, M.A., Kraimer, M.L., Chen, Y.-P. and Bolino, M.C. (2012) ‘Choices,
challenges, and career consequences of global work experiences: A review and future
agenda’, Journal of Management, 38(4): 1282–1327.

Over the past 20 years, there has been increased interest in global forms of
employment. Researchers have identified and investigated a number of global work
experiences, including corporate and self-initiated expatriates as well as more novel
forms of corporate global employees (flexpatriates, short-term assignees, and
international business travellers). In this article, the authors review the empirical
research that has investigated individual choices, challenges, and career consequences
associated with the various types of global work. They summarise and synthesise this
growing body of literature and then develop a taxonomy of global work experiences.

Chang, W. (2005) ‘Expatriate training in international nongovernmental organisations:

a model for research’, Human Resource Development Review, 4(4): 440–461.

In light of the massive tsunami relief efforts that were still being carried out by
humanitarian organisations around the world when this article went to press, this article
points out a lack of human resources development research in international
nongovernmental organisations (INGOs)
and proposes a conceptual model for future empirical research. This article reviews the
three related research areas of NGO history, volunteer training, and expatriate
development; discusses the possibility of integrating the theory from these three areas;
and finally builds a model for further empirical studies for expatriate training in INGOs.

Managing expatriates
Expatriates can be diffi cult to manage because of the problems associated with
adapting to and working in unfamiliar environments, concerns about their development
and careers, difficulties encountered when they re-enter their parent company after an
overseas assignment, and how they should be remunerated. Special policies for them
are required, covering:
• Recruitment and selection;
• Assimilation and review;
• Training;
• Career management;
• Re-entry;
• Pay and allowances (home-based or Host-based pay).

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 11

 Developing global leaders

Companies must cultivate leaders for global markets. Dispelling five common myths
about globalization is a good place to start.
as firms reach across borders, global-leadership capacity is surfacing more and more
often as a binding constraint. According to one survey of senior executives, 76 percent
believe their organizations need to develop global-leadership capabilities, but only 7
percent think they are currently doing so very effectively. 1 And some 30 percent of US
companies admit that they have failed to exploit fully their international business
opportunities because of insufficient internationally competent personnel.
Most of the prevailing ideas in business and academia about global leadership reflect
efforts by leadership experts to adapt the insights of their field to the global arena. I
come at this topic from the opposite perspective, having focused for nearly two decades
on studying globalization and thinking through its implications for business and public
policy.

At the core of my work lies the reality that, while globalization is indeed a powerful
force, the extent of international integration varies widely across countries and
companies and generally remains more limited than is commonly supposed. To be sure,
rapid growth in emerging markets, combined with a long-term outlook of lower growth
in most developed economies, is pushing companies to globalize faster. But metrics on
the globalization of markets indicate that only 10 to 25 percent of trade, capital,
information, and people flows actually cross national borders. And international flows
are generally dampened significantly by geographic distance as well as cross-country
differences. US trade with Chile, for example, is only 6 percent of its likely extent if
Chile were as close to the United States as Canada is. Furthermore, if two countries
don’t share a common language, that alone slashes the trade volume between them by
30 percent.

An appreciation of how distances and differences influence international ties helps

explain some of the organizational and other stresses that established multinationals are
encountering as they accelerate their expansion to emerging markets (for more, see
“Parsing the growth advantage of emerging-market companies”). Emerging Asia is
farther away—and more different, along multiple dimensions—than more familiar
markets in Europe and North America. Japanese multinationals face a distinctive set of
cultural, political, and economic issues that complicate their efforts to expand abroad.

Exaggerated notions of what globalization means—what I call “globaloney”—are also

apparent in prevailing ideas about global leadership. Some training centers aim to
develop “transcultural” leaders who can manage effectively anywhere in the world as
soon as they step off the plane. Yet scholars of cross-cultural management suggest that
objectives like this are unrealistic.

While global leadership is still a nascent field, common conceptions of it already

incorporate myths or half-truths that rest on misconceptions about globalization.
Correcting these myths should help the efforts of companies to increase their global-
leadership capacity.

Myth #1: My company, at least, is global.

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When I present data on the limited extent of international interactions to executives in
large multinational corporations, a typical reaction is that even if markets are not that
integrated, their firm certainly is. Such claims, however, seldom hold up to scrutiny.
Less than 2 percent of firms on Fortune’s Global 500 list of the world’s largest
companies, for example, derive more than 20 percent of their revenues from three
distinct regions.3 Most firms also remain quite domestically rooted in other aspects of
their business, such as where they do their production or R&D or where their
shareholders live. BMW, for instance, derived 51 percent of its sales revenue from
outside of Europe in 2011, but still maintained roughly 64 percent of its production and
73 percent of its workforce in Germany.4

An accurate read on the extent of globalization in one’s firm and industry is certainly a
crucial requirement for global leadership. Also invaluable is an appreciation of the
extent to which the people within your company are far from completely globalized.
Consider just a few pertinent facts. Trust, which some have called the currency of
leadership, declines sharply with distance. Research conducted in Western Europe
suggests that people trust citizens of their own country twice as much as they trust
people from neighboring countries and that they place even less trust in people farther
away. Turning to information flows—also central to leadership—people get as much as
95 percent of their news from domestic sources, 5 which devote most of their coverage
to domestic stories. Similarly, 98 percent of telephone-calling minutes and 85 percent
of Facebook friends are domestic.

The persistent rootedness of both firms and employees has the surprising implication
that global leaders should not seek to sever or hide their own roots to become global
citizens. Rather, they should embrace “rooted cosmopolitanism” by nurturing their own
roots and branching out beyond them to connect with counterparts elsewhere who, like
themselves, are deeply rooted in distinct places and cultures. Indeed, studies of
expatriate performance confirm that expats who identify strongly with both their home
and host cultures perform better than those who identify only with one or with neither.6

This rooted-cosmopolitan approach also accords better with research showing that
people can become “biculturals,” with a truly deep understanding of two cultures, 7 but
probably can’t entirely internalize three, which implies that four is out of the question.
Facing such limitations, attempts to become global by breaking free from one’s roots
seem more likely to lead to symmetric detachment—a lack of meaningful ties to any
place—than to symmetric attachment everywhere.

Myth #2: Global leadership is developed through experience.

Leadership scholars have argued that experience contributes some 80 percent to

learning about global leadership.8 My own investigations of senior executives’
perceptions of globalization, however, indicate that experience, while required, is not
sufficient for the development of an accurate global mind-set.

To illustrate, in a survey I asked readers of Harvard Business Review to estimate a set

of basic values about the internationalization of product, capital, information, and
people flows. The respondents overestimated these values, on average, by a factor of
three. And, more interesting from the standpoint of leadership development, the
magnitude of the readers’ errors increased with their years of experience and the

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seniority of their titles. The CEOs in the sample overestimated the values by a factor of
four!

Why might experience correlate with less rather than more accurate perceptions about
globalization? One possibility is projection bias. Senior executives and CEOs tend to
lead far more global lives than most of the world’s population, often touching several
continents in any given month. Ninety percent of the people on this planet will never
venture beyond the borders of the countries where they were born.

If experience alone is insufficient to develop accurate perspectives about globalization,

what do executives need to learn off the job? A starting point is an accurate read on the
magnitude and patterns of international interactions within their industries and
companies. Rooted maps, described in my 2011 McKinsey Quarterly article,9 can help
executives to visualize and interpret these patterns.

Global leaders also need to understand the factors that shape international interactions
in their businesses, by undertaking a structured examination of cross-country
differences and their effects. That is what a survey of academic thought leaders recently
concluded should be the focus of the globalization of business school curricula.10

Conceptual learning of this sort is a complement to—one might even say a precondition
of, though certainly not a substitute for —experiential learning. When executives can fit
their personal experiences into an accurate global perspective defined by conceptual
frameworks11 and hard data, they can gain more from their typically limited time abroad
and avoid costly mistakes.

Myth #3: Development is all about building standard global-leadership

competencies.

Many lists of global-leadership competencies have been developed in business and in

academia, but these provide only a starting point for thinking through the right
competency model to apply within a particular company. Customization and focus are
essential. In part, that’s because even though literally hundreds of competencies have
been proposed, a lot of these lists have important gaps or fail to go far enough toward
incorporating unique requirements for global leadership. That isn’t surprising, since the
lists often grow out of research on domestic leadership.

One large review of the literature summarizes it in three core competencies (self-
awareness, engagement in personal transformation, and inquisitiveness), seven mental
characteristics (optimism, self-regulation, social-judgment skills, empathy, motivation
to work in an international environment, cognitive skills, and acceptance of complexity
and its contradictions), and three behavioral competencies (social skills, networking
skills, and knowledge).12 To my mind, most of these would also be useful for domestic
leadership. Only the motivational point seems distinctively international, although one
or two more (such as acceptance of complexity and its contradictions) clearly seem
more important in the international domain than domestically.

Typical competency lists also tend to focus on cultural differences, missing other
components critical to global leadership. Economic differences (such as the challenges
of fast versus slow-growth markets) and administrative and political differences

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 14

(including the extent of state intervention) are among the other factors that can cause
leaders to stumble in unfamiliar contexts.

Perhaps most important, standard lists of global-leadership competencies reinforce a

one-size-fits-all view of global leadership that is inconsistent with the reality of
globalization and the mix of work global leaders do. A company may find it useful to
recruit for and develop a small set of key competencies across all of its global leaders.
Yet the diversity of roles that fall under the broad category of global leadership argues
for substantial customization around that common base. At the corporate level, this
implies developing a portfolio of competencies rather than an interchangeable set of
global leaders who have all met a single set of requirements.

Operationally, an ideal training program would therefore include a geographic

dimension and prepare people for dealing with particular origin–destination pairs. For
example, a Japanese executive going to work in the United States would probably
benefit from preparing for the higher level of individualism there. One preparing for
China would in all likelihood benefit more from understanding that “uncertainty
avoidance” is less pronounced there, so executives must be ready for faster-paced
change and greater levels of experimentation.

Customizing training-and-development efforts at the level of individual country pairs is

likely to run up quickly against resource constraints. However, the fact that 50 to 60
percent of trade, foreign direct investment, telephone calls, and migration are
intraregional suggests that, in many cases, customizing at the regional level is
sufficient. Firms will need a mix of regional and global leaders. Regional leadership is
presumably less difficult and costly to develop than global leadership.

At a more granular level, competencies can also be customized to the requirements of

specific executives’ roles. The dimensions to consider include depth in particular
markets versus breadth across markets, the frequency and duration of physical presence
abroad, and a focus on internal versus external interactions.13

Myth #4: Localization is the key.

Some firms, rather than trying to fulfill the requirements of one-size-fits-all lists of
global-leadership competencies, have embraced the opposite extreme of localization.
Significant localization has taken place in the management teams of foreign
subsidiaries. According to one study, the proportion of expatriates in senior-
management roles in multinationals in the BRIC countries (Brazil, Russia, India, and
China) and in the Middle East declined from 56 percent to 12 percent from the late
1990s to the late 2000s.14

Within this broad trend, some firms still rely too much on expatriates and need to
localize more, but localization can be—and, in some instances, clearly has been—taken
too far. Giving up on expatriation implies giving up on building the diverse bench of
global leaders that CEOs say they require. Persistent distance effects, particularly those
associated with information flows, do confirm the general wisdom: global leaders need
experience working for extended periods in foreign locations because living abroad
creates permanent knowledge and ties that bind. Extreme localization leaves no room
for the development of leaders of this sort.

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 15

Executives report that “it takes at least three months to become immersed in a
geographical location and appreciate how the culture, politics, and history of a region
affect business there.”15 This judgment accords with the finding that living abroad
expands your mental horizons and increases your creativity. However, merely traveling
abroad doesn’t produce these benefits.16

Long stays abroad are costly: traditional expatriation typically costs three times an
employee’s salary at home. Nonetheless, firms that really wish to prioritize global-
leadership development will need to allocate the required resources. Better metrics to
track the returns on such investments may help. One survey indicates that just 14
percent of companies have any mechanisms in place to track returns on international
assignments. Most of these companies use metrics tracking only business generated
from an assignment.17

Better career management could help capture and measure returns on investments in
developing global leaders. Evidence indicates that in European and US multinationals,
expatriates still take longer, on average, to ascend the corporate ladder than managers
who continue to work within their home countries. That indicates a deficiency in this
area, as well as an incentive problem.18

Rather than pure localization, firms should embrace the practice of rotation, which
provides the foreign work experience—not just travel—essential to the development of
global leaders. And don’t make the mistake of viewing expatriation as being solely
about sending people from headquarters to emerging markets. The same requirement
for immersion outside of one’s home market also applies to the cultivation of global
leaders recruited in emerging markets. For these executives, time spent in more
established markets can, on the return home, reinforce both local- and global-leadership
capacity.19

Myth #5: We can attract the best talent.

Nationals from key growth markets are underrepresented in the leadership ranks of
many Western companies, so hiring future global leaders from these areas is critical.
Yet recruiting top talent there is becoming increasingly difficult, as described in “How
multinationals can attract the talent they need.” I recall from my own youth in India
how foreign multinationals used to be unequivocally the preferred employers, prized for
their superior professionalism, brands, technologies, scale, and so on. Now I see that
Indian companies have raised their game, putting pressure on multinationals in local
talent markets.

The implications for global-leadership development are threefold. First, shifting to the
rooted-cosmopolitan ideal described here is critical to attracting and developing
executives from emerging markets. This approach makes it clear that ambitious young
Indians, for example, proud of their country, don’t have to refashion themselves as
Westerners to succeed in Western multinationals.

Second, escalating competition for talent in growth markets implies that it is even more
urgent for multinationals to diversify their leadership teams quickly. One of the main
advantages of local firms is the fact that young recruits often can see, in the faces of the
current leadership, that if they excel they have a clear shot at rising to the top. In many

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 16

multinationals, such promises will require a leap of faith until diversity is significantly
expanded. And the local competitors’ ongoing international expansion gradually
diminishes another advantage of foreign multinationals: the ability to offer a wide range
of global opportunities.

Third, incorporating more local talent will require a greater emphasis on developing
people. Tight talent markets and overstretched education systems imply, frankly, that
firms hire some people who are not up to the standards they would prefer to uphold.
Among the great strengths of India’s IT firms is their ability to convert such not quite
fully prepared talent into effective performers on a large scale.

It is indeed in today’s large emerging markets that the war for talent, identified by
McKinsey back in 1997, has become most acute.

Addressing the global-leadership gap must be an urgent priority for companies

expanding their geographic reach. Predictable biases rooted in widespread
misperceptions about globalization are hampering their efforts to develop capable
global leaders.

Expatriate Training & Development in IHRM

Many companies are relocating their employees and sending them on assignment to
work in their overseas operations as expatriates. International assignments are often
more complex than domestic assignments since they involve going to another country
and work in a different culture. This is where training is helpful to best ensure the
success of such assignments.
Features of Training and Development in International Businesses
Training develops expatriate‘s learning orientation and helps them to understand the
culture of overseas destinations (Porter and Tansky, 1999). Even of its importance,
many studies show that companies either do not provide or give very limited cross-
cultural training to expatriates and families because of time constraints and of its high
cost.

Effective training can prevent and minimise the impact of others. A study that surveyed
75 organisations in UK, Holland, Belgium and Germany showed that some of the
biggest issues against expatriates are personal shortcomings in areas such as politeness,
punctuality, tactfulness, orderliness, sensitivity, reliability, tolerance and empathy.
Effective training programmes can minimise these personal behavioural issues. These
issues arise primarily due to differences in Culture.

Training can also improve the overall management style. Research shows that many
host country nationals would like to see changes in some of the styles of expatriates,
including their leadership styles, decision making, communication and group working.

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 17

Proper training can address some of these demands. Training and development is a
subset of Organizational Development (OD), culture change and knowledge
management.

New employees after their selection and old employees on their career move, receive
regular training and development inputs. However, before an international assignment,
it is customary to send the candidate for post-departure training before he or she
assumes full responsibility as a member of the international team.

Candidates are also given pre-departure training which emphasises on cultural

awareness and business customs of the country of posting to help cope with unexpected
events in a new country. This pre-departure training helps in minimising culture shock
and depression that usually sets in a new country and culture.

Evans et al. (2002) describe three main issues that concern the training and
development of the expatriates.
 The first one concerns the different training methods,
 Second the timing of training and
 Third issue concerns preparing the spouse and family when accompanying the
expatriate during the international assignment.

Process of Training and Development in International Human Management

Following schematic model depicts the process of Training and Development in the
International Human Management context.

Pro
cess of Training and Development in International Human Management

Developing an International Mindset

Developing a global mindset and leading with cultural intelligence are two phrases that
are used quite often by management teams, and that can be defined as making oneself
understood where cultural differences are at play.

Training employees and giving them the tools needed to develop the global mindset
needed to succeed prior to engaging in international endeavours is by far the most
effective way to conduct international business and retain employees.

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 18

International teams and leaders need to change their frame of reference from a local or
national orientation to a truly international perspective. This involves understanding
political and cultural influences, trends, practices and international economics. Team
leaders, in particular, need to understand and develop competitive strategies, plans and
tactics that are external to the confines of domestic marketplace orientation.

International managers need not only to recognise the cultural differences but also to
manage them effectively. If the team is to succeed, they need to develop processes for
coaching, mentoring and assessing performance across a variety of attitudes, beliefs and
standards.

Here are a few components of a training regiment that highlights the basic needed
modifications for international success:

1. Develop Relationship Skills

2. Learn the Language
3. Understand the Culture and the Market
4. Know the Simple Differences
5. Be prepared for the Marketplace
6. Find a Mentor or Trusted Partner
7. Have Patience
Develop Relationship Skills
Employees must master these soft skills to be excellent team players, communicators
and problem solvers.

Learn the Language

Language Proficiency can play a role in refining relationship skills. One should seek
opportunities to learn the language through specialised training programs or coursework
that will help to adjust effectively in the host country.

Understand the Culture and the Market

From a cultural perspective, expatriates should learn what is held sacred and what is
viewed negatively. Blending into the market as opposed to creating friction or
embarrassment is necessary to help forge global partnerships.

Know the Simple Differences

It is also necessary to learn the basics of the market that one is working with. From time
zones to measuring systems, these basics can prepare the expatriates for a smoother
transition. Much of this research can be done on the internet through reliable sites
before trip, call or email to show your knowledge of their practices.

Be prepared for the Marketplace

Understanding the essential elements of the international marketplace is fundamental
knowledge required while working in the global domain. Having a high level of
knowledge of international trade and monetary systems is part of the repository of
knowledge essential to stay competitive.

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 19

Find a Mentor or Trusted Partner
Utilising the knowledge of someone with experience in the chosen market can be
instrumental in helping one adjust and succeed.

Have Patience
The global market can offer unique obstacles one may not have been expecting, but the
opportunity to shine on a larger scale should be valued. Time should be taken to work
through challenges to appreciate the role one is in.

Pedagogy of International Training

According to Dowling and Welch (2004), studies indicate that the essential components
of pre-departure training programs that contribute to a smooth transition to a foreign
location include Cross-Cultural Training (CCT), preliminary visits, language training
and assistance with practical day-to-day matters.

Cross-Cultural Training (CCT)

It is generally accepted that to be effective, the expatriate employee must adapt to and
not feel isolated in the host country’s cultural, economic, legal and political
environment. Without an understanding of the host country’s culture, the expatriate is
likely to face difficulties during the international assignment.

Therefore, cultural awareness training remains the most common form of pre-departure
training (Dowling & Welch, 2004). Stroh et al. (2004) refer to the three learning
processes. They claim that the training should help expatriates to:

 Become aware that behaviours differ across cultures and the importance of
observing these cultural differences carefully.

 Build cognitive cultural maps so that expatriates understand why the people of host
country value certain behaviours, how these appear to be and how these can be
appropriately reproduced.

 Practice the behaviours they will need to follow in order to be efficient in their
international assignments.
The processes mentioned above reflect the importance for expatriates to be able to deal
with cultural differences that he/she may confront. It builds the foundation of designing
cross-cultural training for managers (Stroh et al., 2004).

Preliminary Visit: Spousal and Family Preparation

Another training form that is useful in orienting international employees is to send them
on a preliminary trip to the host country. A well-planned trip overseas for the candidate,
spouse, and family provides a preview that allows them to assess their suitability for
and interest in the assignment. Such a trip also serves to introduce expatriate candidates
to the business context in the host location and helps encourage more informed pre-
departure preparation (Dowling & Welch, 2004).

Participating in the visit before formalised training eliminates many of the basic
logistical questions that frequently stress expatriates and their spouses and all for full
Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 20
focus and concentration in Cross-Cultural Training (CCT) learning (Bennett, 2000 pg
243).

Language Skills
The result of lacking host language competence has strategic and operational
implications as it limits the multinational’s ability to monitor competitors and processes
of important information. Having the ability to speak a foreign language can improve
the expatriate’s effectiveness and negotiating ability (Dowling & Welch, 2004).

Baliga and Baker (1985) point out, that it can improve manager’s access to information
regarding the host country’s economy, government, and market. Disregarding the
importance of foreign language skills may reflect a degree of ethnocentrism, which is
when one believes that one’s culture is superior over other cultures.

Knowledge of the host-country language can assist expatriates and family members
gain access to new social support structures outside of work and the expatriate
community (Dowling & Welch, 2004).

Assistance with Practical Day-to-Day Matters

To provide information that assists relocation is another component of a pre-departure
training program. Practical information makes sure the expatriate does not feel left
behind during the adaptation process. Many multinational companies now take
advantage of relocation specialists that help the expatriate with accommodation,
suitable job and school for the spouse and children.

Language training is usually provided if the expatriate never got such training during
the pre-departure training (Dowling & Welch, 2004). Another way of gaining this
information is from the people that are already working as expatriates in the area and
whom are willing to help the spouse and family of the new expatriate to adapt (Webb &
Wright, 1996).

Usually the company will organise practical orientation programs for the expatriate,
his/her spouse and family so that they get familiar with the place they are going to live
in (Dowling & Welch, 2004).

Emerging Trend in Expatriate Training and Development

Some of the emerging trends in the area of Expatriates Training and Development are
mentioned below:

1. Over Reliance on Pre-departure Training

2. Tailored Expatriate Training
3. Use of Short Term Overseas Assignments
4. Real-time Training
5. Assessment and Development Centres
6. Self-training using Electronic Media

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 21

Over Reliance on Pre-departure Training
As an aspect of broader cross-cultural training, pre-departure training programs tend to
predominate. Schullion and Brewster (2001) draw attention to emerging European
research which attacks the conventional wisdom behind expatriate training and
development programmes.

This research questions the validity of the assumption that cross-cultural training should
take place only before the international transfer. It appears that there is still much
informality in training (Celeya and Swift, 2006) and it is suggested that HRD for future
expatriate managers is more likely to involve frequent crossborder job swaps, and short
assignments working in global multicultural teams (Forster,2000; Schullion,2001).

Tailored Expatriate Training

After reviewing some of the American models of expatriate training and development,
Schullion and Brewster (2001) propose that it may be worthwhile examining further
some of the European models. In particular, they point to the nature of European
frameworks which have tailored made programmes to suit the needs of the individual
and the organization.

They contend that in the future, a more tailored made approach to expatriate training is
likely to be the way forward particularly in light of the rapidly changing training needs
of expatriates (Collings et al., 2007).

Use of Short Term Overseas Assignments

It is observed that more and more large firms are increasingly relying on short-term
overseas assignments instead of the traditional expatriate posting (Colings et al.,
20007). These developments and initiatives suggest new ways of developing
international assignees and expatriates.

Research evidence says that even the training which is provided to short term assignees
is not so specific to the country and involves less extensive cross-cultural training than
is offered to expatriates (Tahvanainem et al.,2005). But, it is argued that whether
traditional expatriates or short term assignees all require cross-cultural training and
awareness so as to reduce adjustment problems.

Real-time Training
Mendenhall and Stahl (2000) direct attention away from the traditional topic of cross
cultural training to discuss future training needs that organisations must focus on. They
distinguish between two types of in-country training delivery methods: traditional and
real time. Traditional is the formal classroom lecture where all the expatriates receive
the same content.

Hence, it is inflexible and does not meet the needs of individual assignees. Real-time
delivery on the other hand is tailored to the needs of the individual in the form of
personal counselling or coaching by experts. Given the advantage of real-time training,
organisations incorporate it into their cross cultural training and development
programmes.

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 22

Assessment and Development Centres
Another emerging issue in the development of expatriates is the use of assessment
centres. Assessment centres are increasingly being used to equip expatriates with global
management skills and cross cultural competency (Stahl, 2001).

These centres are designed to evaluate managers who are nominated for an international
assignment on their cross cultural skills and provide feedback on their strengths and
weaknesses for such assignments.

Self-training using Electronic Media

This is another emerging area in HRD for expatriates for self-training based on
electronic media such as software and the internet. In some cases, the electronic training
media is highly suitable for expatriate’s families and other dependents who may not be
participating in pre-departure training programmes offered by the employing
organisations (Mendenhall and Stahl, 2000).

International Job Rotation

International job rotation involves sending employees on a series of short-term
assignments to different countries. These kinds of training are increasingly used by
companies due to increasing globalisation and the need for cross-cultural skills which is
making it more relevant for all employees involved in international work whether they
are based in the home country or a subsidiary in a host country (Caligiuri et al., 2005;
Harvey,1997).

Personal Security
Finally, the issue of personal security particularly in relation to global terrorism, as an
emerging issue in the area of expatriate training and development. Also, health-related
problems linked to business travel are also of consideration in training and development
of expatriates. Certain countries pose a threat for foreign nationals to stay and work
there and hence companies need to deal with such personal issues.

Domestic Versus International Organisations

Exporting and international business can be interesting, exciting and in some cases
challenging. In all cases it should be profitable and help a business grow.
Doing business internationally is not the same as doing business at home. There are
new skills to learn and new knowledge to acquire about the country you will be going
into. You will need to learn about the different laws and regulations, the different
customer buying habits, and change your marketing strategies and materials to appeal to
the new country you are entering. It is important to remember that the way you operate
your business will be determined by culture of the market you are entering, not yours.
It is important to understand the differences between domestic and international
business but they should not inhibit your interest or drive for success internationally.
Rather they should whet your appetite for success.

Cultures
No two cultures are the same and understanding both the social and business culture in
another country is the first key to success. Culture defines everything a society does,
from its business practices, to its response to advertising and marketing, to negotiating
sales. It is important to include research on the culture of the country(s) that you intend
Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 23
to sell to prior to entering their market. Understanding these, often sensitive, areas will
mean that you are better prepared when first entering the market. Although the people
that you will deal with will not expect you to be completely in tune with the culture,
respect and politeness will go a long way.

Level of Competition
The level of competition you will experience in foreign markets is likely to be more
dynamic and complex than you experience in domestic markets.
A good strategic tool to use to determine if you are able to compete in a particular
international market is the Porters 5 Forces analysis. This tool will assess your supplier
power, buyer power, threat of competitor products and the threat of new entrants to the
market.

Market Intelligence
The key points to determine when gathering market intelligence on the market you
intend to enter are:
 Understanding how the market works
 Who your direct competition is, and
 The best market entry strategy.
It may be difficult to find reliable information and data for some markets, particularly
less-developed economies as their statistical agencies may not be as sophisticated as
developed market economies. However it is important to gather as much information as
you can to successful enter the market.

Politics/Government/Legal Systems
No two countries have the same political and legal systems. Each government has its
own policies relating to foreign firms and products. The key is to understand that once
you are in a foreign market you must abide by the rules and laws of that country, not the
ones in your own market. These laws and regulations can severely impact the potential
long term success of your business and it is wise to consult with legal counsel, based in
that country, to ensure you reduce the risk of these laws and regulations effect on your
firm.

International Law
Countries determine their laws based on the needs of their citizens not the concerns of
foreign companies. By and large, international law is a gentlemen's agreement which is
honoured, but not always. For example in areas such as intellectual property, although
there are many agreements in place, protecting intellectual property can be time
consuming and costly.

Technology
The degree of technology can vary substantially in foreign markets. If your product or
service requires a high degree of technology sophistication to use or implement, then
markets with low levels of technology will not be suitable for your busines.

Logistics
Like technology, business infrastructure in foreign markets will be at different levels of
development. This may well have an impact on your ability to get your products to that
market. It is important to research your new target market and understand how goods
are moved within the country before you commit to that market.

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 24

 Media
Advertising your product and service will of course be an important component of your
marketing strategy. It is important to be aware of the types of media available and the
kind of media your target market uses to gain information about products and services
they wish to buy. Not everyone is connected to the internet nor is every customer able
to read and write. This does not mean those markets should be ignored. It does mean
that how you advertise and market your products will require an examination of the
most appropriate media for your target market.

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 25

 International Training Management : Basic Concepts
Introduction As a result of an increase in the number and influence of multinational
enterprises (MNEs), since the early 1990s there has been a growing interest in international
human resource management (IHRM), reflecting the growing recognition that the effective
management of human resources internationally is a major determinant of success in
international business (Dowling et al., 1994; Scullion, 1994; Edwards et al., 1996; Scullion
and Starkey, 2000). In the international arena, the quality of management seems to be even
more critical than in domestic operations (Tung, 1984). However, as Adler and
Bartholomew (1992) have suggested, organizational strategy (the what) is becoming more
international faster than the implementation (the how) and much faster than the development
of international managers (the who). There is still relatively little empirical research,
documenting the IHRM strategies and practices of multinationals. The shortage of
international managers is a significant constraint on the successful implementation of global
strategies (Hamill, 1989; Scullion, 1994, 1995) and many companies underestimate the
complex nature of HRM problems involved in international operations (Dowling et al.,
1999). Moreover, there is much less research into international training and management
development of MNEs, and especially, into IHRM of MNEs originating from economies
other than Western market ones (Siu and Darby, 1999; Shen and Darby, 2004). This study
explores a selection of issues of international training and management development and
their implementation in MNEs, e.g. what are effective international training and
management development approaches? The methodology of this paper is to employ a
literature review and discuss the author’s own empirical research conducted in 2001 on
Chinese MNEs. It starts with international training and then turns to international
management development.

Importance of international training and development

International training and management development are always closely associated in the
management literature. Gregerson et al. (1998) proposed four strategies for developing
global managers: international travel; the formation of diversified teams; international
assignments and training. These four strategies relate to expatriation management,
particularly integrating international training and management development. Training aims
to improve current work skills and behaviour, whereas development aims to increase
abilities in relation to some future position or job, usually a managerial one (Dowling et al.,
1999, p. 155). A truly global manager needs a set of context-specific abilities, such as
industry-specific knowledge, and a core of certain characteristics, such as cultural
sensitivity, ability to handle responsibility, ability to develop subordinates and ability to
exhibit and demonstrate (Baumgarten, 1992). These characteristics and skills are considered
as important international competencies and all can be developed through effective
international training and management development.
International training refers to training for international assignments. There are three broad
types of international trainings in MNEs. They are: (1) Preparatory training for expatriates:

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 26

once a person has been appointed for an international assignment, pre-departure training is
normally used to ensure the candidate has adequate skills and knowledge that are necessary
for working abroad effectively. (2) Post-arrival training for expatriates: after an expatriate
has gone abroad, further on-site training is often used to familiarize the expatriate with the
local working environment and procedures. (3) Training for host-country nationals (HCNs)
and third-country nationals (TCNs): Training should be provided to HCNs and TCNs to
facilitate understanding of corporate strategy, corporate culture and socialization.
Preparatory training for expatriates has received most attention in the international literature
as expatriate failure (i.e. the premature return of an expatriate manager before the period of
assignment is completed) is always regarded as due to a lack of adequate training for
expatriates and their spouses. The expatriate failure rate is an important indicator for
measuring the effectiveness of expatriation management. The costs of expatriate failure are
high and involve both direct and indirect elements. In the case of expatriate recalls, the
direct costs include salary, training costs and travel and relocation expenses. Mendenhall and
Oddou (1985) stated that the average cost per failure to the parent company ranges between
US$55,000 and US$80,000, depending on currency exchange rates and location of
assignment. Indirect costs may be considerable and unquantified, such as damaging relations
with the host country government and other local organisations and customers, as well as
loss of market share, damage to corporate reputation and lost business opportunities. The
literature indicates that expatriate failure is a persistent and recurring problem and failure
rates remain high. Much research has been conducted among US MNEs and it has revealed
“alarmingly high failure rates” (Brewster, 1988). Some expatriate failure rates reported, for
example, are shown in Table I (Shen and Edwards, 2004).
The complex and ever-changing global environment requires flexibility. The organization’s
ability to devise strategic responses, however, may be constrained by a lack of suitably
trained, internationally oriented personnel. Tung (1981, 1982) and Mendenhall et al. (1987,
1995) identified a negative correlation between the rigor of a company’s selection and
training processes and its expatriate failure rate. The use of more rigorous training
programmes could significantly improve the expatriate’s performance in an overseas
environment, thus minimizing the incidence of failure. Earley (1987) has argued that cultural
training enables individuals to adjust more rapidly to the new culture and be more effective
in their new roles. There is an association between met expatriate’ expectation and provision
of international training. “Highly relevant cross-cultural training created either accurate
expectations or expectations of difficulty prior to the assignment” (Caligiuri et al., 2001).
Table II indicates some reasons for expatriate failure in US and Japanese MNEs (Tung,
1982; Dowling et al., 1999).

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 27

 Leadership Models

1. Transformational

Integrity and vision are core qualities of transformational leaders. As a transformational

leader, you will achieve your goals through open lines of communication with staff,
demonstrating your integrity and the respect you hold for your staff’s experience and
knowledge. This mutual respect leads to gains in staff satisfaction and employee retention,
both shown to improve overall patient care and safety.11

Once you present your vision for a project, you will need to motivate others to make it
reality. However, you risk ignoring the needs of individual staff members in pursuit of
fulfilling your grander mission.

2. Transactional

Transactional leadership is a straightforward rewards-based model. It works off the concept

that an employee’s personal interests (as opposed to company interests) are the principal
factors motivating them to complete an assigned task or reach a performance level. If you’re
a transactional leader, you will set performance goals for staff, promise a reward, and
provide that reward upon their successful completion of the goal—or impose a consequence
if staff don’t meet their goals. This method of leadership can be very effective for getting
work done, but it fails to allow space for building relationships at work and inspiring staff to
contribute new ideas.

The transactional model is one of the most prominently utilized in the medical industry. It
can be a useful approach for establishing and meeting short-term objectives, such as
completing specific tasks, achieving quantifiable patient satisfaction goals, and successfully
following all safety protocols.12

3. Servant

As a servant leader, you will mix selflessness with a focus on the higher needs of others as
staff work toward achieving your vision. Through self-reflection and awareness, you gain
insight into your own purpose in life and work, the meaning of their leadership initiatives,
and your personal character. By mentoring your staff, you are able to lift up others to greater
success, improving morale and the business.

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 28

The interdisciplinary nature of healthcare requires a range of professionals to work as a
team. This aligns with the servant leader’s desire to work collaboratively and elevate team
members, all in service of improving patient care.

4. Autocratic

Autocratic leaders do not consult with or consider the opinions of others when making
decisions. You determine a course of action and relay your ideas with full expectation that
staff will complete your assigned actions without question. This method of leadership works
well in situations requiring quick decision making.

The ability for doctors, nurses, and other high-level healthcare professionals to make snap
decisions in times of emergency is critical to saving lives. But the autocratic leader should
also be mindful that employees and patients may be left feeling invisible, neglected, and
potentially even abused if they are treated in ways that disregard their needs.

5. Democratic

The opposite of autocratic leadership is democratic leadership, also known as “participative

leadership.” As a democratic leader, you will seek out the input and perspectives of your
staff, although the final decision belongs to you. Your use of collaboration and discussion
can spark an increase in creativity and innovation. However, you may feel challenged in
situations where you must juggle many diverse perspectives and ideas.

Some leadership decisions in healthcare require staff input and brainstorming to develop a
creative solution to an ongoing challenge. The democratic leadership model helps greatly to
encourage employee participation in thinking outside of the box.

6. Laissez-Faire

The phrase “laissez-faire” translates literally from the French as “allow to do.” 13 It
represents a political, economic, and leadership model that involves passivity. If you are a
laissez-faire leader, you will provide the tools your employees need and then step back to
allow the staff to work everything else out. This hands-off approach represents a deep level
of trust.

By abdicating responsibility for the decision-making process, laissez-faire leaders risk the
situation spiraling into chaos without proper organizational structures in place to guide the

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 29

company’s direction. In healthcare environments, laissez-faire is usually a poor approach,
given the potential for negativity and discord brought on by the lack of structured leadership.

7. Bureaucratic

Following the rules is the secret to bureaucratic leadership success. In this most formulaic of
leadership models, you have a defined job title, a set of responsibilities, and a pre-existing
method for responding to urgent needs. Requiring such strict adherence to established rules
and protocols can create a rigid and tense workplace for employees.

Bureaucratic leaders can be effective in some arenas, especially those involving finance and
data security. In healthcare, a minor deviation from protocol in certain arenas can lead to
serious repercussions from regulators or government oversight agencies, making the detail-
oriented nature of bureaucratic leaders an asset.

8. Charismatic

Do you have the charm and vision to grow a company and turn your staff into your
“disciples” to achieve the company goals you outline? Conviction and a magnetic
personality can take you around the globe as a charismatic leader. Inspiring your team to
share your passion for your vision takes skill, but it can bring rewards in the form of higher
employee engagement and a better bottom line.

In medicine, charismatic leaders can have a positive impact, leading staff to participate more
often in your initiatives. With such an intense focus on your goals, however, you may
develop tunnel vision, forgetting the big picture or falling prey to self-absorption. Distracted
focus can cause major issues in organizational efforts.

9. Pacesetting

Pacesetting leaders are driven to get results. You set the bar high and push your staff to
achieve goal after goal. As a pacesetting leader, you can be quite effective in getting things
done, but your constant hard-driving pace will wear down some employees. It’s a difficult
style to sustain successfully over an extended period.

A healthcare environment is probably not the best fit for pacesetting leadership, although
there may be exceptions. Consider a medical research lab racing to create a COVID-19
vaccine. The drive and passion of a leader who has assembled a team of skilled professionals

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 30

can manifest success. But, as in any industry, the pacesetting leader may burn themselves
out—and take their team with them.14

10. Ethical

The concept of fairness is vital to ethical leaders. This model brings a balance of logic and a
sense of justice, with deep reverence for the rights of everyone involved. By making ethics a
top priority, you treat your staff with respect and honesty that is mutually returned,
benefiting everyone.

Ethics are a key topic for healthcare organizations as they strive to deliver equitable patient
care. To be an effective community resource, the institution must maintain a high level of
trust and goodwill with patients and the public. Ethical leaders in areas of public relations
can be impactful as they work to showcase the strengths of the organization.15

11. Affiliative

Affiliative leadership requires a “people first” mindset. It’s about creating collaborative
relationships and becoming an emotional support system for your team. Connecting on a
direct and personal level with your employees positions you to quickly resolve conflicts
among staff.

Healthcare organizations can benefit from the affiliative leadership model. The baseline
emotion for affiliative leaders is compassion, an essential quality when working with staff
and patients.16

12. Coaching

Much like a sports coach, a coaching leader works with individual staff members to develop
their strengths in an effort to improve the overall success of the organization. If you’re a
coaching leader, you are goal oriented rather than focused on tasks. You look at the big
picture and don’t get lost in the details.

The coaching leadership model applies well to the world of healthcare. You can provide
tools and support for staff who want to strengthen their skills in order to improve
performance, benefiting the company and patients.17

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 31

 Training and Development in International Organisations
Meaning and Definition of Training & Development System

With the developmental emphasis accepted by the organization, it becomes imperative that
organizations establish training system. There needs to be a systematic approach to manage
training which has to answer a few basic queries like:

1) Will the training be done internally or externally? Does the organization have or intend to
develop an in-house training centre?

2) How much and what kind of training will be done externally and is this also an essential
part?

3) Who are the functionaries responsible for administering the training system?

It is a fact that a majority of the organizations today have some kind of in-house
establishment which primarily caters to the operational knowledge and skill requirements
specific to the organization. This implies that the need for certain advanced, specialized
training is met sending people to other (external) institutions which offer training
programmes. The most common among these are specialized institutes which impart training
in management, finance, behavioral skills.

Whether the actual training is done internally or externally, organizations have to follow
certain logical processes for enhancing knowledge, skills, and attitudes of their personnel.
These are:

1) Identification of Training Needs,

2) Preparation of a training Plan,

3) Conducting Training Programme,

4) Managing training Programme,

5) Evaluation of the Training Programmes and the plan, and

6) Selection and Development of Trainers.

Preparation of a Training Plan

The training need identification process provides the basic data for preparing the Annual
Training plan. The primary focus at this stage is to prioritize the various issues thrown up by
the data and seek an appropriate balance between the various trends. The training plan is
expected to specify.

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 32

1) Number of training programmes to be conducted- Internal, external.

2) Level of employees- what will be the coverage of employees through the plan?

3) What will be the subject areas that will be highlighted and what will be left out of the plan
for future?

4) What will be allocation of resources - what are the contingencies worked out?

5) What arrangements are made to accommodate something that emerges beyond the plan?

Organization employs a framework to facilitate the process of deciding priorities.

Organizational policy and priorities is a vital factor. Without a favorable and committed
policy for training and development the entire exercise of collecting data, analyzing and
prioritizing it, will be waste of efforts.

Training plan should give answer to the following :

1) How many people.

2) Names.
Who? 3) Series and grades.
4) Organizational sections.
5) Geographical locations.

1) Training schedule.
2) Dates of training.
When? 3) Length of training.
4) When skills needed or required.
5) Workload demands affecting trainee availability.

1) Training source.
2) Internal.
Where? 3) External.
4) Combination of resources.
5) Geographical location of training.

1) Course tuition.
2) Travel and per diem.
How Much?
3) Time lost from the job.
4) Other costs.

Another related aspect is to decide whether training can be given on the job or in a formal

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 33

classroom set-up. There are situations where certain knowledge or skill based training can be
given on the job. Apprenticeship programmes, Job instruction training, Understudy
assignment (Mentor-prototype relationship), Programmed instruments (self-learning), job
rotation are the commonly used on-the-job training methods. As may be observed, very
often organizations use this channel to train employees the routine, procedural, operational
aspects. It does have an advantage to the extent that the individuals is actually contributing
to the events In the organization and secondly, the individual does see the relevance and gets
the ‘feel of things’ of what is to be done. This has its own significance in the initial period of
joining the organization. An individual is likely to be motivated as he is on the scene of the
work and not in the classroom. Therefore, very often this forms the part of the induction
training.

Conducting Training Programme

To conduct a training programme is not an easy task. The following steps are essential for
conducting a training programme in an organization:

1) Preparation of the Learner : The trainees should ensure that the trainees do not become
nervous during the training period .The trainees should be educated about the importance of
training and its relationship with the equipment, machinery, tools and other items with
which he/she has to work. In sum, the trainees should be explained ‘why’ of each job and
especially the job he is going to perform. The trainer should inculcate interest in the trainees
to learn perfectly so that they perform effectively on their jobs.

2) Identification of Training Needs : Identification of training needs require organizational

analysis, operational analysis, and man analysis. Organizational analysis is concerned with
the determination of enterprise goals, allocation of resources, and establishing the
framework within which training programme is to be carried out. Operations analysis is
concerned with the job an employee is doing or is supposed to do. Man analysis deals with
the review if knowledge, attitudes, and skills of the incumbent and decide the alterations in
the job effectively. While discovering the training needs the following tasks are to be
performed:

i) List the duties and responsibilities or tasks of the job under consideration (Job Description
can be used here).

ii) List the standards of work performance on the job.

iii) Compare the actual performance against the standards.

iv) Determine the areas of the areas of the job where employees are struggling to perform
effectively.

v) Determine what kind of training is to be given to the employee to overcome difficulties in

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 34

performing the given task or job.

3) Who is to be Trained? The second important step in developing an effective training

programme is to decide the employees who are to be trained. These include the supervisory
staff, the newcomer, old employee, or all of these.

4) Imparting Knowledge : Disseminating information and imparting the methods of

performing jobs is the core of training programme. The trainer should clearly tell, shows
explain, illustrate and question in order to put over the new knowledge and operations
concerning the job. The trainee should be told the sequence of performing a given task, and
why each step in the performance of the job is necessary. The trainer should give the
instruction to trains clearly, unambiguously, and completely. The trainer should ask
questions to check whether the trainee understands what he taught and encourage the trainee
understands what he taught and encourage the trainee to clear doubts, if any.

5) Performance Try-Out : To know the effectiveness of training all the trainees are tested.
Testing is done by:

i) Conducting oral or written tests to the trainees to ascertain how far they have learnt the
principles and techniques of performing the job.

ii) Conducting structured interviews about the job.

iii) Asking the trainees to do the job to ascertain their performance.

iv) Studying the profiles and charts of carrier development of the participating trainees and
related assignment techniques.

v) Eliciting the opinion of the top management about the trainees’ job performance.

6) Follow–up : A final step in the training programme is the follow-up. In the connection it
is necessary to remember that “if the learner has not learnt, the teacher has not taught.” The
trainees should be informed about their performance so that they can improve upon it in
future. Providing feedback encourages the trainees to perform better because they will be
able to identify the crucial areas where they are lacking; to know their weak sports and their
strong points in performing the given task. After knowing the limitations it becomes very
easy for the trainees to remove them and become successful on their jobs.

Managing Training Programme

1) Lacking the dates : Training implementation function begins with blocking appropriate
dates once the design is ready. There are so many stakeholders involved in a training activity
like the trainees, the trainers, the organization or sponsor, the service providers and even the
customers who depend upon the services of the trainees. The other factors that influence the

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 35

training dates are climatic conditions and seasonal character of industry for on the job
training. When to block Dates: Dates have to be blocked for any training programme at least
90-120 days in advance, particularly if the programme is heavily dependent upon outside
resources, right from venue to the resource persons. Training managers should consult the
major stakeholders like the organization, the trainers, the trainees (or their supervisors), the
service providers like audio visual equipment’s and hotel managers to ascertain the
convenient dates. From the trainee perspective, the training should not be held during
periods wherein lots of intervening holidays are going to come.

Trainers/ resource persons would be happy to participate if the programme is conducted on

the days they are not engaged elsewhere. If trainers’ date and your date don’t match with
each other no doubt the trainer will loose an assignment, but you as an organizer will also
face serious problems if the said trainer happens to be person of exceptional skills/expertise,
which cannot be found easily in many other trainers.

2) Mobilizing the Resources/ Financial Resources : Training resources of course, does

involve financial resources but goes beyond by touching the human resources, material
resources but goes beyond by touching the human resources. Material resources and
infrastructure resources. The reason why a training manager has to focus seriously on
resource mobilization is because money alone cannot obtain all the other training resources.
For example, you may be willing to pay any amount for the right trainer but still not be able
to locate him. Therefore, searching and bringing the needed resources for your programme is
very important for its overall success.

3) Analyzing course material and learner information : is the first training delivery
competency identified by the international board of standards for training, performance and
instruction (IBSTPI) standards. By using this competency, you can ensure that an
appropriate match exists between the training you deliver and the people who attend the
training. You should usually demonstrate it before you deliver training. However, depending
on the situation and time constraints, you may have to demonstrate this competency during
training delivery.

4) Logical Arrangements : Logistics refer to the movement of people, materials, and

equipment. Logical arrangements involve preparing the training site and ensuring that
people are notified about it, that equipment is in place when and where it is needed, that
food, other refreshments arrive as ordered, and that handout and other materials arrive on
schedule. You must make all logistical arrangements well in advance, and then double-
check them to ensure that everything runs smoothly.

Scheduling or other logistical problem may appear to pose minor inconveniences. But the
impact on the effectiveness of the training and on the trainer’s credibility can be
tremendous- especially when scheduling is tight and learners are difficult to assemble.

5) Arranging the physical Equipment : An important implementation decision concerns

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 36

arranging the physical environment. Following things should be kept in mind.

• Distractions like noise and phone calls and other physical barriers should be avoided.

• In classroom training, proper seating arrangement should be done, comfortable seats

should be provided.

• Training rooms should be well ventilated as extremes in room temperature can inhibit
learning.

• Proper lighting, computers and other equipment’s required for the training should be in
good working condition and should be tested before the training starts.

• Interruptions can be avoided by setting aside certain times of the day or a special location
for training that is free from distractions.

• Additional physical factors a trainer may want to consider include wall and floor coverings
and colors (carpeted rooms are quieter), the type of chairs, the presence of glare, windows (a
view may distract participants), acoustics, and the presence of electrical outlets to run
necessary equipment.

6) Managing the Learning Environment : Managing the learning environment is a major

training delivery competency. It is also the second competency that is typically exhibited
during training delivery. Date Carnegie states that the key to all persuasive speaking is the
ability to grab the attention and interest of the audience from the outset.

i) Attention Getters: You can use six techniques to hold audience attention at the opening
of your session:

a) Providing examples,
b) Posing questions,
C) Stimulating curiosity,
d) Conveying benefits,
e) Using facts and statistics,
f) Incorporating props.

ii) Icebreakers: Are activities used to “break the ice” at the opening of a training
programme. They are important for the simple reason that participants cannot work with you
or with each other effectively in a training session if they remain strangers. Icebreakers are
useful in building effective interaction and esprit de corps among participants.

7) Managing Time : The ability to manage time is an important skill. Most of the training
programmes have limited time available and must be well- managed so that all learning
objectives are met. If designed properly; training should follow a schedule that is usually

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 37

provided in the instructor or participant guide. This schedule lists activities and provides
estimates of how long they should take.

8) Executing, the Programme : The excellence in execution occurs if all the above planned
activities come live in action on all the training days. In other words, the confirmed trainees
and trainers should turn up for the programme, the training hall and laboratory facilities
should be available , the service providers should render the services on time without
diluting th quality and the desired learning should occur as per the plan.

The training manager should once again remind all the concerned participants just a day
prior to the commencement of [Link] should rach the venue at least one hour in
advance to the venue on the first daymorning to ensure that everything is happening as
planned. Defaulters can be reminded again on the first day morning to join the programme.
In spire of the plans and precautions it is common for a couple of lapses to occur, which
should be taken care of by the contingency plan. At the end of each day the manager should
take stock of the situation and remind the concerned parties for the next day events.

Purchases and photocopies: There may be involved small purchases and photocopying
activities during the programme. The purchases could be stationery items and folders for the
trainees as also for the trainers; bouquets and mementos for the trainers and any other
necessary items that may be needed for the training. The printing or photocopying activities
are needed for reference material to trainees, activity sheets during the session, evaluation
sheets at the end and so on. If photocopying is not available at the centre, then a nearby
centre should be identified in advance for the purpose.

Time Management: there is no dearth of trainers who can prolong the sessions to three
hours against the allotted time of one hour. Prolonging one session can adversely affect all
other sessions. Therefore the training manager as a coordinator of the programme should
ensure that sessions are not prolonged beyond the allotted time. Never hesitate to inform the
trainer in advance about the constraints of time. If any trainer continues the session beyond
the allotted time, then it is also necessary to intervene by showing a red flag to him or by
sending message on a piece of paper requesting him to stop.

Catering Arrangements: Make sure that proper catering arrangements are made. Proper
arrangements means that lunch and tea are served as per the appointed time, they are
delicious, fresh and hygienic, accommodations are made for the special needs of
disadvantaged trainees, like those who want sugarless tea, dry bread or vegetarian dishes.
Catering arrangements are very important and any negligence in this regard would upset the
whole programme. Understand the sensitivities of vegetarians and non-vegetarians. For
example, in India, non-vegetarians would not mind taking vegetarian food but vegetarians
would not mind taking vegetarian food but vegetarians will not take non-vegetarian food.

9) Concluding, the Programme : Conclude the programme on a happy note. Obtain the
feedback from the trainees about the programme and answer if the trainees any

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 38

clarifications.

10) Post-Programme Activates : If any learning needs have not been met during the
programme, make sure the information/material is sent immediately after the programme,
through e-mail or courier. Settle the bills of service providers on the last day of the
programme or on the next day. If any post-training activities have to be performed by the
trainees, like submitting an assignment or completing a reading assignment, remind them of
the same. Sometimes, instructions may have to be sent to the trainee’s supervisor at
workplace to provide any assistance needed or cooperate in the enhancement of trainee’s
learning, or to observe the post-training performance and submit a report on the
improvements. In case of paid prgrammes, a couple of trainees may not have paid the course
fees yet. Follow-up with such trainees may not have paid the course fees yet. Follow-up with
such trainees or with their employers to pay the outstanding amount if, you have drawn
advance amount from your finance department, please arrange to submit the bills and square
off the entries in the books of accounts.

Training Methods

When a person is working in a garden, some tools are more helpful in performing certain
tasks than others. The same logic applies when considering various T&D methods. In some
cases, place it is not feasible to learn while at the same time performing jobs. Although an
increasing amount of training takes place on the job at the time the employee needs the
training, many T&D programs occur away from the work setting. Training methods are
usually classified by the location of instruction. On the job, training is provided when the
workers are taught relevant knowledge, skills, and abilities at the actual workplace; off-the-
job training, on the other hand, requires that trainees learn at a location other than real work
spot.

FUNCTIONS OF TRAINING METHODS

1) Assist in creating an Appropriate Learning Environment: The training methods

facilitates learning in a relatively risk-free and non-threatening manner. It aims to reduce
learning fatigue by making learning an interesting, meaningful and even enjoyable
experience. Use of an appropriate training method stimulates the participants and sustains
their interest in the training activity. It arouses their curiosity. Thus, it helps in creating and
sustaining an appropriate learning environment for a particular module or topic.

2) Enhance participation and Involvement of the Group: A training method aims to

enhance the process of learning by emerging and motivating the participants for greater
contribution and involvement in the training process. This promotes two-way
communication between the participants and the trainers. It keeps them in a state of action
and agility. It is directed at bringing out the best in them. It also facilitates a meaningful and
productive investment of their knowledge and experience in the learning process.

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 39

3) Give Greater Control of the Learning process to the participants: Modern learning
theory emphasizes the desirability of giving learners a certain degree of ownership and
control of the learning processes. Ownership of the programme raises the stakes of the
participants, strengthening their commitment to the programme and its success.

4) Promote Group Interaction and Cohesion: Increased participation and involvement in

training activities promotes interaction among the participants. Free and open sharing of
experiences and ideas can assist in the development and nurturing of healthy and positive
relationships within the group. Support mechanisms are strengthened and this leads to better
cohesion in the group.

TYPES OF TRAINING METHODS

A multitude of methods of training are used to train employees. The most commonly used
methods are:

1) On-the-Job Methods
2) Off-the-Job Methods

On-the-job Methods

On–the-job–methods of management development are very popular and are used widely by
majority organizations. These methods are popular among trainees also. They are more
effective and not boring as in case of classroom method. These methods are most suited to
technical personnel’s and scientists. These are low cost methods. The following is the brief
resume of on-the-job methods of executive development.

Training Methods
On-the-job method Off-the-job method
- Coaching - Transactional Analysis
- Job Rotation - Sensitivity Training
- Understudy - Case Study
- Multiple Management - Simulation Exercises
- Apprenticeship - Management Games
- Job Instruction Training (JIT) - Managerial Grid
- Role Playing
- Computer-aided Instruction
- Incident Method
- In Basket Method
- Conference
- Lectures
- Programmes by Academic Institution
- Audio-Visual Method
- Programmed Instruction

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 40

 - Vestibule Training
- Brainstorming
- Field Trip
- Demonstration
- Questioning

1) Coaching : Coaching is an activity of guiding a manager by a senior one, A senior

manager must play an active role in guiding and teaching skills. He tells him how to do a job
and corrects the errors. A senior manager is referred to as a coach. So coach makes an
analysis of trainee’s work performance and tries to improve it with suitable guidance. He
renders advice, criticizes, makes necessary suggestions and gives directions to the trainee
executive for his growth and development. This is a method of learning by doing. A
feedback is also taken by the coach. The coach must be a good teacher. The coach may
divert the trainee executive from routine work and assign him to handle some complex
problem and observe his performance.

This technique suffers from limitations that there is heavy dependence on the coach and
there developed a tendency to make present executive styles as central. This will not give
way to new and developed managerial styles and practices in the organization. The trainee
executive acquires the skills and knowledge to perform a job and also acquire the teaching
or coaching ability.

Merits of Coaching

i) To the Organization: Organization benefits from several ways like reduced errors,
improved quality, reduced wastage, better customer service and more cost savings.

ii) To the Employee: Employee benefits from coaching through reduced work stress,
improved performance, brighter career prospects, enhanced pay, more job satisfaction and
larger possibility of job retention.

iii) To the Supervisor: Supervisor can get the things done through subordinates easily. Can
reach his targets in qualitative and quantitative terms and the resultant career and
compensation prospects.

iv) To the society: Society benefits as the coaching process creates a wealth of learned
manpower. Coaching builds a society of capable people.

v) Feel of Actual Production Conditions: The trainee learns on the actual equipment in use
and in the real environment of his job. Therefore, he gets a feel of the actual production
conditions and requirements and so is better prepared to take on the duties as soon as the
training is over.

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 41

vi) Economical: It is highly economical, as no additional personnel or facilities are required
for training.

vii) Less Time Required: It is most appropriate for teaching the knowledge and skills which
can be acquired in a relatively short period, say, in few days or weeks.

Demerits of Coaching

i) Disorganized: Instruction could be highly disorganized and haphazard and not properly
supervised, as there is no formal, tried and tested training programme with specified course
structure. The evaluation will be only in the form of output of the employee. The outcome
depends on the trainers’ capability to explain the job content and motivate the employee to
perform. If the trainer is unable to impart the skills to the trainee effectively, it can ruin the
career of thee employee.

ii) Distractions: Learners are often subjected to low distractions of a noisy shop or office.

iii) Low Productivity: There is the disadvantage of low productivity, particularly in the
initial period after the training, when the employee is unable to fully develop his skills. This
can be construed by the management as a failure on the part of the employee. The employee
suffers and the organization also suffers a setback, as a new recruit will have to b selected
and put through the same routine of training. The time lost in this process can disturb the
production schedules.

2) Job Rotation : The job rotation is a very good method of transforming a functional
specialist into a generalist executive. The job rotation refers to transfer of managers from
one job to another or from one department to another or from one section to another in a
planned manner. The transferred executive to new job has to assume the full responsibility
and duty. The object is to broaden the outlook and acquire the diverse skills and knowledge
needed to perform the various jobs in the organization. The manager will learn new ideas
and gain new information underlying various jobs. It will motivate him and help him acquire
comprehensive knowledge and skills. He will understand others difficulties and realize the
circumstances under which his colleagues are working. It will free him from the monotony
of working in the same position. Job rotation may be horizontal or vertical. The horizontal
job rotation is a lateral transfer while vertical is a promotion. Many organizations in India
use job rotation technique to impart multiple skills to their executives. The job rotation
imparts multiple skills and broadens the outlook of trainee executive. It increases the
knowledge and skills of performing various jobs in the organization and aids executive to
gain in experience.

This technique is not cost effective. On the new assignment the manager may commit
mistakes which add to costs.

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 42

Merits of job rotation:

i) Increases Experience : It broadens employees and increases their experience. Boredom

and monotony, which develop after a person has acquired the skills necessary to perform a
task effectively, are reduced when transfers are made frequently.

ii) Managing of functional fields : Executives will tend to think in terms of managerial
principles rather than the technical aspects of particular functional fields. That rotating will
permit good executives to determine the functional fields in which they would prefer to
manage.

iii) Broad View of Problems : By gaining a broad view of interdivisional problems, the top
position in the company can be filled by better qualified appointees. However, there is
occasional hesitation to adopt job rotation because it runs counter to two basic feature of an
organization:

a) Specialization and the expertise it fosters, and

b) Cost.

iv) Variety : The Employ experiences variety of work, workplace and peer group.

v) Broaden Knowledge and Skills : Job rotation helps to broaden the knowledge and skills
of an employee.

vi) Broadens Work Experience : Job rotation broadens the work experience of employees
and turns specialists into generalists.

vii) Beneficial for Management : It is beneficial for the management also as the
management gets employees who can perform a variety of tasks to meet the contingencies.

viii) Improves Self Image : This method improves the self-image and personal worth of the
employee.

ix) Flexibility : With the help of this method, people become more flexible. They are
prepared to assume greater responsibility especially at other positions.

Demerits of Job Rotation

• Increased Costs : Development costs are increased and productivity is reduced by moving
a worker into a new position just when his efficiency, at the prior job was creating
organizational economies.

• Limited Job Knowledge : An extensive rotation programme can result in having a vast
number of employees situated in a position where their job knowledge is very limited. And

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 43

even though there job knowledge is very limited. And even though there might be
significant long-term benefits from the programme, the organization must be equipped to
deal with the day-to-day problems that result when inexperienced personnel perform new
tasks and when rotated managers make decisions based on little knowledge of the activity at
hand.

• Demotivate Intelligent trainees : Lastly, job rotation can also demonstrate intelligent
trainees who seek specific and clear-cut responsibility in their chosen specialty.

• Frustration : The employees who want to perform challenging jobs feel frustrated. Even
though they are shifted to new positions but it is only a horizontal shifting. Instead of
performing one monotonous job, they are made to perform several jobs of the same nature.

• Interruptions in Work Routine : Frequent shifting of employees may cause intrruptions in

the work routine of the organization.

• Limited Impact on Employee Motivation : The method has very limited impact on
employee motivation and productivity.

3) Understudy : It is a development technique to prepare a manager for taking over the

charge of his senior after his retirement, transfer, promotion or death. This technique
provides an equally competent successor to a senior manager who is currently holding the
post. The executive who is understudy acts as assistant to the superior executive whom he
will succeed. The senior executive teaches him all the skills and imparts complete
knowledge for the performance of the job and gives him a feel of what his job is. The
understudy is developed in all respects such as decision making, leading, problem solving,
etc. The senior managers realize that unless they develop their subordinates, they would not
get promotion. Under these circumstances they prepare their subordinates for taking over
their charge. The understudy is given an opportunity to see the job into in absence of senior
manager who is on leave. Only a cure is taken by the understudy that the decision making in
critical matter is delayed and is left to the manager currently holding the post.

Merits of Understudy

i) Continuity of Managerial Talent : The understudy method ensures continuity of

managerial talent even when the superior leaves the organization.

ii) Leadership Qualities : The leadership qualities of trainee would be developed because
he may be asked to supervise and guide a number of subordinates at work.

iii) Higher Responsibilities : Best method for subordinates to assume higher responsibilities
in future.

iv) Cheap Method : This is a cheap method.

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 44

Demerits of Understudy

i) Selection of Wrong person : If a wrong person is selected then it will lead to errors.

ii) Favouritism : The understudy may be picked by the superiors and in this process he may
exhibit favouritism.

4) Multiple Management : multiple management is also known as committee management,

under this technique a committee consisting of some managers is formed and given an
assignment to study the company problems and to make advice or give recommendations to
the top management. These committee are usually formed with the junior executives. They
study the problem are find out alternate solutions, discuss them and arrive at a final decision.
The appointment of managers to the committees facilitates their exposure to the organization
and widens their outlook and provides them with an excellent opportunity to develop
themselves by acquiring knowledge of different aspects relating to business and industry and
to interact with the group.

5) Apprenticeship : Apprenticeship is a formal agreement between an individual who wants

to learn a skill and an employer who needs a skilled worker. Apprenticeship training is an
“earning while learning” arrangement for a required term. Training occurs under the
supervision of an experienced person; an apprentice receives knowledge and develops skills
associated with a designated trade through on-the –job training. The skills an apprentice
learns on-the-job are supplanted with a required number of weeks each year of technical
training. Upon successfully completing an apprenticeship programme, the trainee is eligible
for applying permanent job in an organization subject to availability of vacancy.
Apprenticeships are highly valued by people needing to gain skills to enter a new
occupation. Apprentices benefit from having guaranteed employment while undertaking
training and from having the opportunity to learn skills from experienced, skilled and
qualified persons in their chosen occupation. Apprenticeships are also popular with those
employers who are involved in the system. Employers have the benefit of an employee who
can be trained in the particular skills their enterprise requires, who becomes more and more
productive as time passes and who can be paid at a lower rate than a fully qualified worker
during the contract-of-training period.

MERITS OF APPRENTICESHIP

i) Learn while Earn Money : It offers the opportunity for participants to learn while they
earn money according to a progressive pay scale that automatically increases as their skills
increase.

ii) Blending of theory : It provides a blending of theory with practical learning. It is a prime
example of the “learning by doing” approach to education.

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 45

iii) Motivate Individuals : Learning while on the job can motivate individuals who may not
do well in the traditional classroom setting.

iv) Practical Skills : Apprentices will earn while they learn and will gain practical and
transferable skills while keeping their options open.

v) Interaction : Training and jobs are brought closer together.

vi) Update Techniques : It helps to assure that up-to-date equipment and techniques are
used in training.

vii) Holistic training : By design, apprentices train for an entire industry, rather than for an
individual employer.

vii) Life long Learning : It offers a foundation for lifelong learning.

Demerits of Apprenticeship

i) Limited Knowledge : Education will be limited to knowledge of one trade.

ii) Difficult : Not all apprenticeships are easy.

6) Job Instruction Training ( JIT) : It consists of a formal systematic programme for

conducting training in the workplace; practicum and internships. It is the responsibility of
supervisors and managers to utilize available resources to train, quality and develop their
employees.

JIT is a technique of training the employees by using the actual work site as a proper setting
to instruct employees while at the same time engaging in productive work. JIT is one of the
best training methods because it is planned, organized and conducted at the employee’s
worksite. It is particularly appropriate for developing proficiency skills unique to an
employee’s job especially jobs that are relatively easy to learn and require locally- owned
equipment’s and facilities. Morale, productivity and professionalism will normally be high
in those organizations that employ a sound JIT programme.

Merits of JIT

• You can follow classroom, web-based and off-site instruction with JIT to ensure job
competency.

• For many kinds of jobs, structured JIT has been proven to be the most effective, efficient
method of learning job skills to increase productivity and quality.

• JIT ensures that performance assessment can be done at Kirkpatrick’s level 3, job

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performance.

• JIT is Just-in-Time (classroom training is often just-in-case).

• Learning is immediately relevant to the work of the unit, whether it deals with materials,
information or services.

• JIT reinforces work relationships, especially when the supervisors are involved.

• Informal peer training _ the “hidden JIT” that teaches unsafe and ineffective practices, is
reduced or eliminated.

• Trained JIT trainers reduce wrong learning and ensure that employees learn the most
expert methods.

• Instructors use training plans to determine the most productive use of time- that means
what skills needed the most to improve efficiency of the unit.

• Instructors use job aids to ensure learning is most efficient and job performance is most
effective.

Demerits of JIT

i) One major drawback of on the job training can be finding the right time for it. The person
responsible for giving and evaluating the training has to be sure that his or her other job
responsibilities are being met.

ii) Another disadvantage of JIT is that it can be difficult to find the right person to conduct
it. The person doing the training must have the knowledge and skills with the same
equipment that the learner will be working with. Care must also be given not to pass on
sloppy work habits or unintentionally teach irrelevant or inefficient work methods to the
new worker/learner.

Off-the-Job Methods

On–the-job development techniques are insufficient for the total development of executives
of any organization. This gap can be bridged by adopting off-the-job development
techniques. The important off-the –job development methods are the following:

1) Transactional Analysis : The Transactional Analysis (TA) is an attempt to understand

and analyze trainee’s personality through the communicative interaction. The interaction
between individual human being is viewed as transactions, for instance, “I will do this for
you and you do that for me.” TA holds the view that the human personality is constituted by
three ego states, i.e., parent, child and adult. All these three ego states are reflected in his

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 47

personality when he communicates with others. Parent state is reflected when he behaves
and interacts like a parent and others “do’s and “don’ts” e.g., Do this, don’t delegate
authority to him, etc. Parent state reflects dominance. An individual reflects a child state
when his interaction is characterized by an impulse that is natural. An individual reflects his
adult mode or state when his interactions are rational. The transactional analysis aims at
liberating the adult from the parent and child state. The adult state is rational and deals with
reality. It collects information and see reasons and takes decisions. Adult behavior and
interactions are expected from executives and managers who are decision-makers.
Transactional analysis is an important psychiatric technique for executive development of
recent origin used by many organizations.

2) Sensitivity Training : This is the technique of bringing about a change in behavior of the
executives through group process.

According to Edwin B. Flippo, the objective of this technique is the “development of

awareness of and sensitivity to behavioral patterns of one self and others”. This technique is
also referred to as laboratory training. The trainee executives participate and influence each
other through unstructured group interaction. The participants here are provided open
environment where they discuss freely among themselves. The environment is created by a
professional behaviorist. They openly express their ideas, concepts, attitudes and get
opportunity to know about themselves and the impact of their behavior on their fellow
participants. This technique helps in creating mutual trust and respect. It thus develops
managerial sensitivity. It develops team sprit. This technique is regularly used by some of
the Indian companies.

Merits of Sensitivity Training

• Increased ability to empathize.

• Listening skills, openness, tolerance.

• Conflict resolution shills.

• Increased awareness of one’s own self and that of others: also gives an opportunity for
introspection.

• Increased inter-personal competence in dealing with relationships and problem solving.

Demerits of Sensitivity Training

i) Participants may resort to their old habits after the training.

ii) With its emphasis on emotions and feelings it may lead to an inability in taking hard
decisions.

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iii) May lead to either excessive depression or a state of extreme excitement and anxiety.

3) Case Study : Under this technique the cases based on actual business situations are
prepared and given to the trainee managers for discussion and arriving at a proper decision.
Managers are given opportunity to find out the latent problems and suggest alternatives to
tackle them. The selection of the best-alternative solution trainees have to suggest .This
technique helps in improving the decision making skills by making:

Objectives of the Method

i) It can be used to stimulate an analytical, in-depth discussion with a view to presenting a

multifaceted or an integrated perspective of the situation for better understanding, guidance
and action of the participants. This will also help the participants develop a wider outlook of
the situation and the issues that they are likely to face in their job situation.

ii) The case study method can help in deriving useful generalizations or principles regarding
working in the field. Those can be related to a relevant theory, model or a body of
knowledge.

iii) In many cases, the method is used as an exercise in decision making or problem-solving.
It helps to develop the participant’s ability to think, decide and choose appropriate course(s)
of action. He learns to respond to a situation or problem in the most appropriate way, taking
into consideration all the incriminating circumstances, rather than going by a particular style
of functioning or response.

iv) The case study method can help develop knowledge of skills in the participants that will
help them to deal with a multitude of situation in their job that requires regular action or
intervention.

v) As case study is embellished with description of people and situations taken from real life
situations with which the participants are familiar and can even identify with, this method
also promotes exploration and awareness of one’s attitudes, values and patterns of job or
personal behavior.

vi) This method can be effective in enhancing the involvement of participants in the process
of learning. Thus a greater responsibility is devolved on them for their own learning. They
can learn in a relatively non-threatening and risk-free environment. This can help in their
overall motivation for the programme.

Merits of Case Study Method

i) It enables the pooling of the experiences of a group of participants.

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ii) It distributes Knowledge and facts.

iii) It promotes the process of synthesis of several concepts and principles into one multi-
faceted explanation or plan of action.

iv) If improves participants skills in problem analysis and communication.

v) The case study method helps in group cooperation and improves interpersonal skills.

Demerits of Case Study Method

i) It is very time-consuming compared to more direct, expositive teaching methods.

ii) It requires the participants to engage in deep-processing of the general principles

involved, through a process of reflection and abstraction and the promotion and control of
this process, in tum, requires special skills and expert knowledge on the part of the trainer.

4) Vestibule Training : Vestibule training offers access to something new (learning) . A

form of training in which new employees learn the job in a setting that approximates as
closely as is practicable to the actual working environment. An example is the training of
airline pilots in a simulated cockpit. This type of training is generally used when the use of
actual equipment by untrained employees would be too risky or when the actual work setting
would be unconducive to learning (i.e., because of noise levels).

Merits of Vestibule Training

i) The workers are trained as if on the job, but it did not interfere with the more vital task of
production.

ii) Transfer of skills and knowledge to the workplace was not required since the classroom
was a model of the working environment.

iii) Classes are small so that the learners received immediate feedback and could ask
questions more easily than in a large classroom.

Demerits of Vestibule Training

i) It's main disadvantage is that it is quite expensive as it duplicates the production line.

ii) It has a small learner to trainer ratio.

iii) It is difficult to create a factory conditions.

5) SIMULATION EXERCISES : Simulations are popular techniques of management

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development. In this technique a duplicate work situation similar to the actual job situation
is created and the trainee is given a particular role to find out solutions to the problem and
take decision. He gets a feedback of his performance. It sharpens the decision making
quality of the trainee. It is costly method of management development.

Merits of Simulation Training

i) Simulation method represents a real life situation wherein a trainee’s decision results in
outcomes that indicates what would happen if the trainee would have been on the job.

ii) Simulation training is suitable for cross-cultural relations, team building and
empowerment and problem-solving in real work conditions.

iii) Trainees participate in reality –based, interactive activity where they imitate actions
required on the job. It is a useful technique for skills development.

iv) It is a useful technique of skills development.

Demerits of simulation Training

i) This method is time-consuming.

ii) It requires a great deal of skill and practice on the part of trainers.

6) Management Games : Under this technique the trainee executives are divided into rival
groups assuming the management of simulated companies. Each rival group has to discuss a
given subject relating to production, marketing, pricing, etc., and arrive at a decision. The
groups react to the decision of each other. They get immediate feedback on their
performance. This technique helps in building team spirit among executives. This is
followed in many Indian companies.

7) Managerial Grid : It is a multiphased programme ranging from three to five years. It

improves managerial skills, intergroup relations and develops leadership styles.

8) Role playing : It is also a simulated exercise. The participations have to assume a role of
a person in the simulated situation. They have to react to one another in the similar manner
as they would be doing a job as manager in real situation. Participations are given ablest of
learning points which they have to use during executive subordinate encounter. They can
take the help of videos for improvement in management skills. Through this technique the
human relations skills, marketing and sales management, interviewing skills are acquired.

According to Solem “Role –plays may be defined as a dynamic process that involves
participants assuming specified roles and acting out significantly.”

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Objectives of Role-Play

i) Role-play is a key training method for engendering behavioral changes. The actions
behavior and interactions of the participants during the exercise from the basis of self-
appraisal and feedback from others in the group. It permits the participants to receive
objective feedback from other members of the group in a relatively non-threatening and risk
free atmosphere.

ii) Role- play emphasizes the importance of understanding and appreciating other’s points of
view, behavior and feelings. The exercise also provides opportunities to the participants to
learn about different ways, other than their own, of responding to a particular situation or a
problem. This in itself is a good learning. It also enhances their perception of others
behavior, thus helping them in their interaction with other people, in job or life situations.

iii) It is also a training tool to improve the skills of the participants in the areas of problem
solving and decision-making. They are able to develop better insight into the problems that
they are likely to confront in their job situations and are exposed to different dimensions of
these problems.

iv) The participants are also in a position to develop their negotiating skills through
interaction within the sub-groups as well as in the larger group.

v) It provides a useful experience in self- expression and interpersonal communication and

enhances interpersonal effectiveness. The method provides opportunities for introducing
new stimuli and evoking new responses.

Merits of Role-play Method

i) One advantage is that the participants experience the roles directly either as players or as
observers instead of studying the same theoretically.

ii) As a result of the direct experience, the participants develop certain skills which would
otherwise be difficult to be developed through theoretical reading.

iii) Role-play method also helps in developing sensitivity and to acquire insight into the
problems of human relations.

iv) Role-play method helps diagnosing problems in different situations where human beings
interact.

v) Role-play method provides a safe learning environment.

vi) Role-play gives a change to the participants to experiment with new ideas.

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 52

Demerits of Role-Play Method

i) One disadvantage is that if the trainer is not clear about the instructional objectives and the
suitability of the content to be treated through role-play and simply uses the method for the
sake of using the method, it is bound to flop.

ii) The trainer has to prepare the role –briefs clearly and precisely.

iii) Selection of participants for the roles is also another tricky situation.

iv) Sometimes it so happens that the role-players fail to do the job effectively.

Comparison between Case Study Method and Role- Play

Case Study Role-Play

This method samples the real life This method also samples the real-life
situation, revolving round scenarios situation, revolving round scenarios
and problems concerning and problems concerning
organizations and individuals. organizations and individuals.
Presents the problem for analysis and Locates it in a life-like, interactive
discussion. setting.
Focuses more on cognitive learning, Locates it in a life- like, interactive
and on thinking. setting.
Typically emphasizes both cognitive
There and then situation. Therefore, and affective development on the part
less involvement of the participants. of learners. Thus, it focuses on
thinking and doing.
There is some predictability about Here and now situation. Therefore,
the discussion and the response of greater involvement of the
the participants. participants.
Emphasizes facts and situations and Stresses the importance of behavior,
deals with analysis and responses. reactions and feelings.

9) Computer Aided Instruction (CAI): This is an extension of programmed instruction.

CAI is an improved system in at least three respects:

i) CAI provides for accountability as tests are taken on the computer.

ii) A CAI training programme can also be modified easily to reflect technological
innovations in the equipment for which the employee is being trained.

iii) This training also tends to be more flexible in that trainees can usually use the computer
almost any time they want, and thus get training when they prefer.

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It is a fact that feedback from CAI is as rich and colorful as modern electronic games
complete with audio and visual displays. A deterrent with regard to CAI is its high cost , but
repeated use may justify the cost.

10) Incident Method : Under this technique the incidents based on real situation are
prepared .Each participant is asked to study the incident and make decisions. Afterward, the
group of participants makes discussion and arrives at a decision. This method develops the
intellectual level, judgment of the participant. This technique was developed by Paul Pigors.

11) In Basket Method : Under this method a basket containing various kinds of
correspondences such as reports letters, replies, applications each involving some problems
is given to the trainee and within a specified time limit he has to sort out all the
correspondence by passing orders, recommendations, delegating authority to his
subordinates and distributing work etc. This resembles to real life situation. Through this
method trainee learns the decision–making abilities. This is less expensive method.

12) Brain storming : Brain storming is a group creativity technique designed to generate a
large number of ideas for the solution of a problem. The method was first popularized by
Alex Faickney Osborn in a book called “Applied Imagination.” Osborn proposed that group
could double their creative output with brainstorming.

Brainstorming is a process for developing creative solutions to problems. It works by

focusing on a problem and then deliberately coming up with as many solutions as possible
and by pushing the ideas as far as possible. One of the reason it is so effective is that the
brain stormers not only come up with new ideas in a session, but also spark-off from
associations with other people’s ideas by developing and refining them.

Brainstorming can be an effective way to generate lots of ideas on a specific issue and then
determine which idea-or ideas- is/are the best solution. Brainstorming is most effective with
groups of 8-12 people and should be performed in a relaxed environment. If participants feel
free to relax and joke around, they’ll stretch their minds further and therefore produce more
creative ideas.

Process of Brainstorming

i) Set the Problem : Before a brainstorming session, it is critical to define the problem. The
problem must be clear, not too big and captured in a specific question such as “What service
for mobile phones is not available now, but needed?. If the problem is too big, the facilitator
should break it into smaller components, each with its own question. ii) Create a
Background Memo : The background memo is the invitation and informational letter for

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the participants, containing the session name, problem, time , date and place. The problem is
described in the form of a question and some example ideas are given. The memo is sent to
the participants well in advance, so that they can think about the problem beforehand.
iii) Select Participants : The facilitator composes the brainstorming panel, consisting of the
participants and an idea collector. A group of 10 or fewer members is generally more
productive. Many variations are possible but the following composition is suggested.

a) Several core members of the project who have proved themselves.

b) Several guests from outside the project, with affinity to the problem.

c) One idea collector who records the suggested ideas.

iv) Create a List of Lead Questions : During the brainstorm session the creativity may
decrease. At this moment, the facilitator should stimulate creativity by suggesting a lead
question to answer, such as “can we combine these ideas “? Or “How about looking from
another perspective”? It is best to prepare a list of such leads before the session begins.

v) Session conduct : The facilitator leads the brainstorming session and ensures that ground
rules are followed. The steps in a typical sessions are:

a) A warm-up session, to expose novice participants to the criticism-free environment. A

simple problem is brainstormed, e.g., what can be improved in Microsoft Windows?

b) The facilitator presents the problem and gives a further explanation if needed.

c) The facilitator asks the brainstorming group for their ideas.

d) If no ideas are forthcoming, the facilitator suggests a lead to encourage creativity.

e) All participants present their ideas and the idea collector records them.

f) To ensure clarity, participants may elaborate on their ideas.

g) When time is up, the facilitator organizes the ideas based on the topic goal and
encourages discussion.

h) Ideas are categorized.

i) The whole list is reviewed to ensure that everyone understands the ideas.

j) Duplicate ideas and obviously infeasible infeasible solutions are removed.

k) The facilitator thanks all participants and gives each a token of appreciation.

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Merits of Brainstorming Method

• Brainstorming creates an atmosphere for free expression of ideas.

• Brainstorming method helps to develop creativity in an individual.

• Brainstorming method is employed when a problematic situation requires a solution for

which no readymade answer is available.

• Brainstorming process helps to develop the higher cognitive abilities of the participants.

• The method also helps to develop certain affect attributes like taking initiative by not
becoming nervous, controlling emotions while discussing, etc.

• Another advantage is that the trainer does not have to depend upon gadgets or many co-
trainers for completing the formalities of the method.

• Brainstorming method is most useful in case of any emergency situation where a quick and
creative decision has to come from a group.

• Making seating arrangements for this method is not difficult.

Demerits of Brainstorming Methods

i) One disadvantage is that the content which is informative in nature cannot be taken up
through brainstorming method.

ii) The method is not suitable for chronologically young ones.

iii) A dynamic trainer who knows the modus operandi of a brainstorming method is essential
to employ the method successfully.

iv) Without a proper and effective recording, the method is bound to fail.

v) Another disadvantage in brainstorming method is that it is very difficult initially to

convince the participants that they can speak freely.

vi) Normally a brainstorming session does not prescribe any advance preparation through
related literature.

vii) The method also does not suggest references for further reading on the topic discussed.

13) Field Trip : A fieldtrip or fieldwork is a journey by a group of people to a place away
from their normal environment. The purpose of the trip is usually observation for education,

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non-experimental research or to provide students with experiences outside their everyday
activities. The aim of this research is to observe the subject in its natural state and possibly
collect samples. It provides an understanding of the activities, the working procedures or the
management processes of an organization, depending on the objectives set out for a trip. It
enables the participant to interact with a real field setting or situation, leading to direct
learning.

Merits of Fieldtrip Method

i) One advantage is that it gives practical experience to the participants where they learn
from direct experience.

ii) Field method provides a favorable change from the monotonous theoretical sessions in
the classroom.

iii) Participants while working in small groups or even individually are interdependent in the
work setting and thereby they develop team spirit to work.

iv) Another advantage of fieldtrip is that the input which cannot be dealt with theoretically
in classroom situation but require practical experience outside, can be taken up only through
fieldtrip.

v) Inputs taken up through fieldtrip supplement the learning in the classroom theoretical
sessions.

vi) Reports writing in the fieldtrip method train the participants in systematic presentation of
relevant data.

vii) The participants learn to systematically collect relevant data, analyze them by
employing suitable statistical techniques.

Demerits of Fieldtrip Method:

i) One of the disadvantages is that the academic work is hampered by the disturbance in any
of the non-academic arrangements.

ii) It expects very high coordination ability from the trainer.

iii) Fieldtrip is no doubt expensive.

iv) Another disadvantage of this method is that all participants have to go out to the field for
study.

V) If the participants consider the visit for fieldtrip as an outing for complete relaxation and

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entertainment, the instructional objectives of the input can never be achieved.

vi) Sometimes it appears that more than one trainer will be needed to manage the fieldtrip.

vii) If the fieldtrip is kept in the middle of the programme duration instead of keeping
towards the end, the activities of the method may disturb the inputs following the
completion of the fieldtrip.

14) Demonstration : The dictionary meaning of the word “demonstration” is the outward
showing of a feeling, etc. a description and explanation by experiment; so also logically to
prove the truth; or a practical display of a piece of equipment to show its display of a piece
of equipment to show its display of a piece of equipment to show its display of a piece of
equipment to show its capabilities. In short it is a proof provided by logic, argument ,etc.
Demonstration is a physical display of the form, outline or a substance of objects or events.
For the purpose of increasing knowledge of such objects or events. Demonstration involves
“showing what or showing how.” Demonstration is relatively uncomplicated process which
does not require extensive verbal elaboration. When new products and equipment’s are
being introduced then demonstrations are excellent.

Demonstration Process

The demonstration is an instructional method in which an instructor shows and explains.

Demonstrations may be used to enrich and increase the learner’s understanding. It is
important for the instructor to realize that there is more to the demonstration method than
showing. The effective demonstration involves telling, showing, questioning and
application. When skill development is the desired outcome, practice must be included as a
major component of the method.

Technology in International Training Management.

Technology can be a big benefit for those willing to embrace it. Training is one area that
stands to benefit greatly from technological advances. The technology has been around for
years that allows employees to attend meetings virtually, through conference calls and even
video conferencing. But that’s just the tip of the iceberg.

Let’s take a look at some of the various ways organizations can

utilize technology in employee training.

Here are a few of the many ways employers can utilize

technology in employee training and professional development:

 The latest HR management software can be used to manage employee career

development paths.

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 58

  Training can be developed and administered completely online—sometimes even
without the assistance of an instructor. This can allow employees to take the training
at any time. (This, of course, has been true for many years, and it remains true as
advances in software and applications make the development of such training even
simpler.)
 Learning Management Systems (LMS) can assist organizations in tracking training
progress and compliance. They can also serve as a repository for optional training
materials—allowing employees to “self-serve” and get or request additional training
as needed. With or without an LMS, organizations can create internal repositories of
training and information to allow employees to have access to information they may
not have even known existed.
 Online training can be made interactive, including quizzes to assess understanding.
 Training can be administered by way of mobile applications, allowing individuals to
complete training truly on the go.
 Individuals can even attend live training sessions without having to be in the same
location, thanks to video conferencing options. Like several items on this list, this
has been reality for many years but advances in technology and Internet speed and
reliability make it even easier to use than in years’ past.
 Online collaborative tools allow employees and teams to share knowledge. Even
things like instant messaging and social media can allow employees more types of
interaction, which can better facilitate knowledge transfer between individuals.
 There are more online sources of information than before, including blogs, online
videos, electronic databases, electronic versions of books (which may have been
previously unavailable in electronic form), user forums, and user-populated online
data repositories. Employees have the opportunity to make use of any of these to
gain topic-specific knowledge.
 Training materials can also be presented in a video game format to increase
employee engagement with the materials. There are also forms of task simulations
that can be utilized as training before starting work or while learning a new
procedure.
 Tablets and smartphones are increasingly used both in educational and work contexts
as a means to access information, including electronic versions of textbooks or
manuals.

Many of these advances allow employers and employees to complete training programs
much more efficiently because they allow employees to take training on demand rather than
to wait for a live session to occur. They can also reduce costs because no one has to travel
for such a program. Technology will continue to change and enhance how we work,
including how we gain access to information that assists with our jobs and professional
development. It can also allow training to be broken into much smaller, more digestible
pieces, which can increase retention—which is beneficial for both the employee and
employer.

Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 59

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Prof. Aravinda H G, Assistant Professor, MBA, SVIT Page 60